Question

Which best describes a central bank's primary goals?
Responses

managing credit and ensuring the money supply's liquidity
managing credit and ensuring the money supply's liquidity

reducing unemployment and maintaining cash flow
reducing unemployment and maintaining cash flow

limiting inflation and reducing unemployment
limiting inflation and reducing unemployment

controlling stagflation and reducing unemployment

Answer 1

limiting inflation and reducing unemployment

A central bank's primary goals are typically price stability (controlling inflation) and supporting maximum sustainable employment; it also promotes overall financial stability and manages the money supply and interest rates to achieve those objectives.