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Multiple Choice Quiz
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1
The primary reason for a country to create its own central bank is to ensure control over its currency.
A)True
B)False
2
The job of the central bank is to improve general economic welfare by its ability to eliminate systematic risk.
A)True
B)False
3
To be successful a central bank must be independent of political pressure, make decisions by committee, be accountable to the public and transparent in communicating its policy actions, and operate with clear goals.
A)True
B)False
4
A central bank controls the government's budget.
A)True
B)False
5
Inflation is a real temptation to shortsighted fiscal policymakers.
A)True
B)False





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