One of the main roles of a central bank is:
A) managing the nation's money supply.
B) coordinating the relationship between the banking system and federal government.
C) ensuring that banks provide enough loans.
D) monitoring federal spending.

Question

Quizplus · Accepted Answer

Managing the nation's money supply is one of the primary functions of a central bank. Central banks use tools such as interest rate adjustments, open market operations, and reserve requirements to influence the amount of money in circulation and maintain price stability in the economy.

One of the Main Roles of a Central Bank Is