8
QuizMultiple Choice

Business and Government — Test

Question 8 • Economics

Which best describes a central bank's primary goals?

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

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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