The essential functions of any central bank are:

A. preventing the formulation of monopolies or other market failure, and acting as a lender of last resort.
B. managing the money supply, and acting as a lender of last resort.
C. overseeing major business transactions, and managing the money supply.
D. collecting taxes, and managing the supply of money.


Answer: B

Economics

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If the nominal interest rate 8% and expected inflation 3%, the expected real interest rate in year t is approximately

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What will be an ideal response?

Economics

Elimination of riskless profit opportunities in the futures market is

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Economics