The most important function of a central bank is to

Question

Quizplus · Accepted Answer

The most important function of a central bank is to control the quantity of money in circulation, which includes regulating the money supply, managing inflation, and stabilizing economic growth. While a central bank may set interest rates and hold deposits, these functions are typically secondary to its primary role in controlling the money supply. Loans to the Federal Reserve System and lending money to large corporations are not primary functions of a central bank.

The Most Important Function of a Central Bank Is to