Question

Why do central banks play an important role in the global economy?

A. They have control over the interest rates charged on the debts
owed by their governments.
B. They control the foreign currency reserves that are used for
international trade.
C. They prevent foreign companies from removing profits from their
national economy.
D. They charge tariffs on trades that take place in the currency
exchange market.

Answer 1

Answer: They control the foreign currency reserves that are used for

international trade.

Explanation: just took quiz on k12

Answer 2

A.

Step-by-step explanation:

The central banks are those institution that manages and control nation's monetary policy. A central bank serves in providing funds to nation when commercial banks runs out of supply.

Therefore, the important role played by the central bank is that they control the interest rates charged by their governments. As the another function played by the central bank is to oversee that their members bank do not charge extra rates.

Thus option A is correct.