Central Banks

The roles of a central bank are to promote ___ stability.

Which one is the function of Bank Negara Malaysia?

• Create more loans

• Issue money to the financial market

• Maintain international reserves

• Oversee investors

Which one is NOT a monetary policy instrument?

• interest rate

• moral suasion

• minimum liquidity requirement

• price stability

If BNM increases the level of interest rates, this will cause an​ ___ in the level of cost of credit. Hence, demand for loans​ will drop.

Which financial policy provides the roles, functions and objectives of development financial institutions?

• Insurance Act 1996

• Anti- Money Laundering Act (Act 613)

• Money Services Business Act 2011

• DFI Act 2002

If MLR ratio is dropped, the level of reserves available to the bank and the banks' lending ability will ___

What are the objectives of Islamic Financial Services Act 2013?