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

Question

Quizplus · Accepted Answer

The primary function of a central bank is to set monetary policy, which includes managing money supply, controlling inflation, and regulating interest rates. The central bank does not regulate dividend payments by corporations or control the bond market. It may publish statistics on banking and related financial matters, but this is not its primary function.

A Primary Function of a Central Bank Is to