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    Question

    The central bank's primary role in an economy is to:

    A Regulate fiscal policy Correct Answer Incorrect Answer
    B Control inflation through monetary policy Correct Answer Incorrect Answer
    C Set interest rates for commercial banks Correct Answer Incorrect Answer
    D Oversee government spending Correct Answer Incorrect Answer

    Solution

    A central bank's key function is to manage inflation by controlling the money supply using tools such as interest rates, open market operations, and reserve requirements.

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