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
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.
What is the role of a central bank as a lender of last resort?