The Roles and Functions of the State Bank of Vietnam

How does the State Bank of Vietnam (SBV) cooperate with the Government?

•  By lending money to commercial banks only

  
  

• By acting as the Government’s financial and monetary advisor

•  By printing money for all private companies

  
  

• By managing tax collection

What does it mean when the SBV is called the “Bank of Banks”?

• It provides loans to individuals and companies

• It manages the national budget for the Government

• It provides financial services and support to commercial banks

• It supervises international financial markets

The State Bank of Vietnam is primarily described as the central bank of our country. Which key policy does it focus on implementing?

• Monetary policy

• Fiscal policy

• Credit policy

• Foreign trade policy

What happens when the central bank lowers interest rates?

• People save more and spend less

  
  

• Inflation immediately falls

  
  

• Banks stop lending

  
  

• Borrowing becomes cheaper and the economy grows

  
  

What is one tool the State Bank of Vietnam uses to control inflation?

• Printing more money

  
  

• Adjusting interest rates

• Increasing government spending

• Reducing exports

  
  

What is the State Bank of Vietnam (SBV)?

• The largest commercial bank in Vietnam

• The central bank of Vietnam

• A private investment bank

• A government ministry managing taxes

What does it mean that the SBV is the only issuer of the national currency?

• It controls all banks in Viet Nam

•  It sets the exchange rate

•  It is the only organization allowed to print and circulate the Vietnamese dong 

  
  

• It manages foreign investment

If the SBV didn’t exist, what could happen?

• Inflation could go out of control

  
  

• Banks might collapse without supervision

•  People could lose trust in the financial system

  
  

• All of the above

Which of the following is NOT a function of the SBV as the “Bank of Banks”?

• Holding required reserves from commercial banks

• Operating interbank payment systems

• Issuing government bonds

•  Providing short-term loans to banks

What is one of the supervisory functions of the SBV?

• Promoting foreign investment

  
  

• Managing the national budget

  
  

• Issuing shares for private banks

  
  

• Setting safety standards and monitoring commercial banks