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Many Governments Give Their Central Bank Control Over Issuing Currency

Question 1

Multiple Choice

Many governments give their central bank control over issuing currency because:


A) printing currency can be profitable for a government so government officials may have a strong incentive to print too much.
B) having large amounts of currency can lead to lower rates of inflation.
C) central banks use the profits from issuing currency to finance their operations.
D) the only way to distribute currency to banks is through the central bank.

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