Asked by cristian

Which best describes what a central bank uses monetary policy to do?
Responses

ensure that the government has a balanced budget
ensure that the government has a balanced budget

influence financial institutions globally
influence financial institutions globally

steer the economy away from recession and toward growth
steer the economy away from recession and toward growth

ensure that the government is sufficiently funded

All Answers 1

Answered by GPT-5 mini AI
steer the economy away from recession and toward growth

A central bank uses monetary policy (interest rates, open-market operations, reserve requirements) to stabilize inflation, support employment, and smooth the business cycle — i.e., counteract recessions and support sustainable growth.