MC18. Which of the following is not a potential benefit of a CBDC for governments?
A. Improved tax collection
B. Increased financial stability
C. Greater control over the monetary system
D. Reduced public debt
Answer:D
MC18. Which of the following is not a potential benefit of a CBDC for governments?
A. Improved tax collection B. Increased financial stability C. Greater control over the monetary system D. Reduced public debt
Explanation: CBDCs are unlikely to reduce public debt as they are a liability of the central bank and are backed by reserves, which may increase public debt.