Which best describes a central banks primary role a) controlling inflation b) increasing credit c) printing money d) creating monetary policy

The correct answer is A. The primary role of a central is book is to control inflation.

Even though the other options are also functions of a central bank, they are not the primary role. Central banks have an important part to play in the economy. They help control and regulate inflation.

The option (d) is correct. The main role of the central bank is to create monetary policy.

Further Explanation:

Central bank:

The central bank is a public entity that has authority over the production and distribution of money in a specific country. The formation of the monetary policy is an emerging function of the central bank. The central bank helps in straightening the economic condition of the country by easing or tightening the supply of money.  

Justification for the correct and incorrect options:

a.

Controlling inflation: This is an incorrect option because the primary role of the central bank is to create the monetary policies.

b.

Increasing credit: This is an incorrect option because the increase in credit is not a main function of central bank.

c.

Printing money: This is an incorrect option because the central bank participate in the flow of the money in a country.

d.

Creating monetary policy: This is the correct option because the central bank makes the monetary policies in order to sraingthen the economic condition of a country.

Thus, the correct option is (d).

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Answer details:

Grade: Middle school

Subject: Business

Chapter: Banking

Keywords: best, describes, centrals, bank, primary, role, monetary policy, currency, economy A) controlling inflation, increasing credit, printing money, creating monetary policy.

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