An essential function of a central bank is to:
A) manage the money supply.
B) collect taxes.
C) issue debt.
D) control and monitor government budgets.

Question

Quizplus · Accepted Answer

Managing the money supply is a key role of a central bank, as it helps ensure stability in the economy by controlling inflation and maintaining price stability. Collecting taxes and issuing debt are typically the responsibilities of the government, while controlling and monitoring government budgets may be a function of the central bank in some countries, but it is not an essential function.

An Essential Function of a Central Bank Is To