One of the main roles of a central bank is:
A) managing the nation's money demand.
B) coordinating the banking system to ensure a sound economy.
C) accepting deposits from households and other private individuals.
D) funding federal government spending.

Question

Quizplus · Accepted Answer

A central bank's main role is to oversee and coordinate the banking system to ensure a stable and sound economy. It sets monetary policy, regulates banks, and manages currency and reserves. Managing money demand, accepting deposits from households, and funding government spending are not the central bank's primary responsibilities.

One of the Main Roles of a Central Bank Is