Question

“Since financial crises can impart severe damage to the economy, a central bank’s primary goal should be to ensure stability in financial markets.” Is this statement true, false, or uncertain? Explain.

Short answer

The given statement is uncertain.

Step-by-step solution

Concept Introduction

An economy has significant adjustment pointers like the result, GDP, inflation rate, and work. Periods of the business cycle are significant monetary factors too. Nonetheless, the strength of the financial market might forestall financial crises, whenever managed and controlled at the right time.

Explanation

Most business analysts likely wouldn't question that attempting to keep up with security in financial business sectors is critical to the economy. In any case, having a steady and focused on center around financial market solidness to forestall crises by and large is likely superfluous since financial crises are for the most part lovely uncommon. Furthermore, continually zeroing in on keeping up with dependability in financial business sectors could come to the detriment of overlooking more significant elements that can be undeniably more expensive to the economy on an everyday premise, like settling result, unemployment, or other related transient developments in the business cycle.

Final answer

So, the statement is Uncertain.