Question

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Which of the following benefits might come from establishing a central banking system?
SELECT ALL THAT APPLY

People will earn more money.
Prices of goods will stabilize.
States will have more money.
Money will increase in value.

Answer 1

Answer:

The correct answer is: Money will increase in value.

Explanation:

The central banking system is one of the principal means of preserving economic stability, as central banks determine how the economy and finances of a country will flow.  

Central bank adjusts the value of money by using different strategies. One of the best examples would be increasing or lowering interest rates. When the interest rates decrease, banks can give more loans and investments, so the economy of one country reactivates by making money more valuable.