Final answer:
The main goal of central banks such as the Federal Reserve is to manage monetary policy with a focus on maintaining low and stable inflation rates, while also considering employment and economic growth. In many countries, central banks legally practice inflation targeting to achieve this goal. Therefore, the correct option is A.
Step-by-step explanation:
The main goal of any country's central bank is to use monetary policy to keep inflation low and stable. Central banks, such as the Federal Reserve in the United States, are tasked with balancing various macroeconomic objectives, including pursuing economic growth and maintaining full employment. However, an important focus for many central banks worldwide, as indicated by the practice of inflation targeting, is primarily to maintain low and stable inflation rates. Despite inflation targeting not being formally adopted by the Federal Reserve, it must still consider both unemployment and inflation in its monetary policy decisions.
By keeping inflation low, the value of money remains more stable, and the purchasing power of consumers does not erode rapidly. This involves making decisions about the money supply and interest rates to influence macroeconomic policy. Additionally, central banks are responsible for regulating the nation's banking system to ensure the protection of bank depositors and the overall financial stability of the economy.