Meaning, origin and functions of central bank. - SS2 Commerce Past Questions and Answers - page 1
1
What is the primary function of a central bank?
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A
Managing fiscal policy
B
Promoting international trade
C
Controlling inflation and stabilizing prices
2
Which of the following is NOT a function of a central bank?
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A
Issuing currency
B
Conducting elections
C
Supervising and regulating commercial banks
3
What is the role of a central bank as the "banker to the government"?
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A
Managing public debt and providing loans
B
Regulating interest rates for consumers
C
Controlling the stock market
4
How does a central bank influence the money supply in the economy?
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A
By controlling the exchange rate
B
By adjusting interest rates and buying/selling government bonds
C
By issuing credit cards to consumers
5
What is the oldest central bank in the world?
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A
Bank of Sweden
B
Bank of England
C
European Central Bank
6
Name one function of a central bank in managing the country's monetary policy.
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7
What is the role of a central bank as a lender of last resort?
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