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The institution that conducts monetary policy and keeps the financial system running smoothly is the:
ACentral bank
BChamber bank
CClearing bank
DContract bank
Answer & Solution
Correct answer: A. Central bank
1. Commercial banks serve households and firms.
2. One national institution stands above them.
3. That institution is the central bank.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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