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Central banking

QuestionAnswer
The central bank will sometimes lend money if there is a run on a commercial bank.
Banks would probably start taking too many risks if they could always be sure of rescue by the central bank.
Central banks are usually responsible for printing and distributing banknotes.
The central bank can alter the amount of money commercial banks are able to lend.
There will be low and stable inflation if monetary policy is successful.
Created by: Gergana Hristova
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