The public should be concerned about a central bank losing money on its investments or loans it makes to banks because

Question 5 options:

Large losses by a central bank could lead to the central bank becoming insolvent.

The value of a currency is backed by the central bank's assets and a fall in the value of these assets tends to cause a fall in the value of the currency.

Large losses by a central bank tend to lead to inflation.

Central banks return their profits to the fiscal authorities so these losses mean a loss of money for the taxpayer compared to if the central bank had been repaid.