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.

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Central banking

Question	Answer
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.