A primary function of a central bank is to
A) regulate dividend payments by corporations.
B) act as a regulator of banks.
C) control the bond market.
D) publish statistics on banking and related financial matters.

Question

Quizplus · Accepted Answer

One of the primary functions of a central bank is to act as a regulator of banks, supervising their operations and ensuring their stability. Central banks also provide banking services to commercial banks and act as a lender of last resort in times of financial crisis. While central banks may interact with the bond market, controlling it is not typically a primary function. Similarly, while central banks often publish statistics on financial matters, this is not their primary function. And while central banks may establish policies related to dividend payments, regulating them is not a primary function.

A Primary Function of a Central Bank Is to