A _________ is responsible for maintaining the value of a state's currency to the extent that it can by limiting the amount of money printed and avoiding inflation.
Correct answer: B. central bank
- A. regulatory commission
- B. central bank
- C. fiscal policy
- D. currency policy
Explanation
A central bank manages the money supply and monetary policy, seeking to protect the currency's value and control inflation. Fiscal policy concerns government taxation and spending, not primarily the amount of money printed.
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Practise International Political Economy
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