10
QuizMultiple Choice

Business and Government — Test

Question 10 • Economics

Which best describes a central bank's primary goals?

Answer
A
reducing unemployment and maintaining cash flow
B
managing credit and ensuring the money supply's liquidity
C
controlling stagflation and reducing unemployment
D
limiting inflation and reducing unemployment

Explanation

A central bank’s primary goals generally include keeping inflation low and supporting high employment. Choice C, “limiting inflation and reducing unemployment,” captures these goals. Managing credit and the money supply can be tools central banks use, but they are not the best description of the goals themselves.

AI-written and checked against the verified answer.

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