Answered

Why do central banks play an important role in the
international banking system?
O A. They control all of the exchanges between different
national currencies.
O B. They control a country's foreign exchange reserves
and set its monetary policies.
O C. They make and enforce a set of tight regulations
limiting capital mobility.
O D. They are responsible for printing and distributing all
of the currencies used around the world.

Answer :

Moriahmakram

Answer:

B

Explanation:

The correct answer is option B : They control a country's foreign exchange reserves and set its monetary policies.

Central banks play a crucial role in ensuring economic and financial stability. They conduct monetary policy to achieve low and stable inflation. In the wake of the global financial crisis, central banks have expanded their toolkits to deal with risks to financial stability and to manage volatile exchange rates.

Why other options are incorrect ?

  • The main work of the Centeral bank is to manage the economic stability , so for this they have to set certain rules and also help with the Country's foreign exchange.

To learn more about Central banks refer :

https://brainly.com/question/25711082

#SPJ2

Other Questions