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How did the national bank regulate the nation's economy?

A) It controlled the supply of currency
B) It made loans to businesses
C) It sold government bonds
D) It paid high interest rates

Please help, it is due in an hour and I can't afford to be behind.. Willing to even jack up the points by a lot more if that's possible just please someone. Thanks so much!!

User Erdysson
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2 Answers

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The answer is a. Hope this helps:)

User Eugene Smoliy
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National bank regulate the nation's economy by controlling the supply of currency (option A). For example, when some countries face an economic crisis, the National bank has "printed" more money. The problem with this measure is that the money loses its value, so the prices escalate quickly. This situation is seen in Venezuela, the actual government issued more money, but didn't apply other strategies to face the crisis. Thus, people have thousands of bills, but they are worth nothing, or almost nothing.

User Andrey Borisko
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