Meaning, origin and functions of central bank. - SS2 Commerce Past Questions and Answers - page 1
What is the primary function of a central bank?
Managing fiscal policy
Promoting international trade
Controlling inflation and stabilizing prices
Which of the following is NOT a function of a central bank?
Issuing currency
Conducting elections
Supervising and regulating commercial banks
What is the role of a central bank as the "banker to the government"?
Managing public debt and providing loans
Regulating interest rates for consumers
Controlling the stock market
How does a central bank influence the money supply in the economy?
By controlling the exchange rate
By adjusting interest rates and buying/selling government bonds
By issuing credit cards to consumers
By adjusting interest rates and buying/selling government bonds
What is the oldest central bank in the world?
Bank of Sweden
Bank of England
European Central Bank
Name one function of a central bank in managing the country's monetary policy.
One function of a central bank in managing the country's monetary policy is controlling inflation.
What is the role of a central bank as a lender of last resort?
The role of a central bank as a lender of last resort is to provide funds to banks facing liquidity problems.