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Questions and Answers
What is the primary responsibility of a central bank?
What is the primary responsibility of a central bank?
Implementing monetary policy, managing the currency, and controlling the money supply
What is one of the macroeconomic objectives of a central bank?
What is one of the macroeconomic objectives of a central bank?
Price stability and economic growth
What is the effect of increasing official interest rates by a central bank?
What is the effect of increasing official interest rates by a central bank?
To control inflation
What is the purpose of a central bank's role in regulating money in circulation?
What is the purpose of a central bank's role in regulating money in circulation?
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What is another responsibility of a central bank regarding currencies?
What is another responsibility of a central bank regarding currencies?
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What is the purpose of a central bank's oversight of the inter-bank market?
What is the purpose of a central bank's oversight of the inter-bank market?
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What is an expansionary monetary policy likely to do to interest rates?
What is an expansionary monetary policy likely to do to interest rates?
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What is a potential consequence of a central bank's inability to lower interest rates further?
What is a potential consequence of a central bank's inability to lower interest rates further?
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What is a challenge facing central banks in setting monetary policy?
What is a challenge facing central banks in setting monetary policy?
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How does a central bank manage the money supply to combat deflation?
How does a central bank manage the money supply to combat deflation?
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