The fundamental policy objective of the central bank is to assist the economy in achieving in all of the following except:

Question

Quizplus · Accepted Answer

The primary objectives of a central bank typically include promoting financial market stability, stable prices (to control inflation), and stable output (to support economic growth). However, promoting the stability of a specific currency in the foreign exchange market, such as the Canadian dollar, is not a fundamental policy objective. Currency stability can be a byproduct of achieving the other objectives, but it is not a direct target in itself. Central banks focus on domestic economic conditions rather than targeting exchange rate levels directly.

The Fundamental Policy Objective of the Central Bank Is to Assist