Commercial and Central banks GCSE Economics

Which of the following are central banks

• HSBC

• Bank of China

• People's Bank of China

• US Federal Reserve

How do commercial banks earn profit

• By charging more to lend money than they pay to borrow it

• By paying more to borrow money than they charge for lending it

• by minting coins

• By printing notes

Which type of bank is responsible for supervising a country's banking system?

• A central bank

• A commercial bank

• An investment bank

• A saving bank

What is the function of a central bank?

• Issuing shares

• controlling the money supply

• deciding the amount of government expenditure

• raising taxes

What is the main aim of a commercial bank?

• Act as a bank of the government

• To issue bank notes

• To make a profit

• To manage the national debt

Which of the following IS NOT a function of a central bank?

• Managing the money supply

• Acting as a banker for the government

• Holds foreign reserves and gold

• Provides loans for property development

Which of these IS NOT a method for commercial banks to make profits

• Charging interest on deposits

• Fees and charges

• Currency exchange

• car and personal loans