Question

which best describes a central bank’s primary goals?
○ limiting inflation and reducing unemployment
○ reducing unemployment and maintaining cash flow
○ controlling stagflation and reducing unemployment
○ managing credit and ensuring the money supply’s liquidity

Explanation:

A central bank's primary goals typically involve maintaining price stability (limiting inflation) and promoting full employment (reducing unemployment). The other options have incorrect or less - relevant goals: maintaining cash flow is not a primary central bank goal, controlling stagflation is more of a response to a specific economic situation rather than a primary goal, and managing credit and ensuring money supply liquidity are means to achieve the primary goals rather than the primary goals themselves.

Answer:

limiting inflation and reducing unemployment