MC31. What is the potential impact of CBDCs on monetary policy?
A. CBDCs could make monetary policy more effective by providing greater control over the money supply.
B. CBDCs could make monetary policy less effective by making it more difficult to control the money supply.
C. CBDCs are unlikely to have any significant impact on monetary policy.
D. CBDCs could lead to increased inflation due to increased money supply.
Answer:A
MC31. What is the potential impact of CBDCs on monetary policy?
A. CBDCs could make monetary policy more effective by providing greater control over the money supply. B. CBDCs could make monetary policy less effective by making it more difficult to control the money supply. C. CBDCs are unlikely to have any significant impact on monetary policy. D. CBDCs could lead to increased inflation due to increased money supply.
Explanation: CBDCs could potentially make monetary policy more effective by providing central banks with greater control over the money supply. This could enable central banks to more effectively manage inflation and stabilize the economy.