A central bank is best thought of as:

Question

a. A bank owned by the central government.
b. A bank used by other banks.
c. A bank located in the middle of the financial district.
d. A bank that buys and sells stocks or equities.

Answer 1

The best answer is: b. A bank used by other banks.

A central bank primarily serves as the bank for commercial banks and is responsible for overseeing the monetary system, regulating the banking industry, and implementing monetary policy. It does not typically engage in buying and selling stocks or act solely as a government-owned institution.