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WorksheetsRoles and Importance of Central Bank
Total questions: 8
Worksheet time: 4mins
Which among these is not a well known Central Bank ?
The Federal Reserve Bank of the USA
Bank of Japan
The Bank of England
The European Central Bank
The Reserve Bank of India
Who owns the Central Bank?
Prime Minister
People
Government
President
Which of the following are common functions of the central bank?
Conduct of monetary policy
Lending to the general public
Supervising the stock market
Lending to the commercial banking system
Which of the following functions of a central bank may potentially conflict with its monetary policy role?
Manager of the national debt
Supervisor of the banking system.
Issuer of currency
Banker to the banking system
Banker to the government
Assume that there is an increase in money's own rate, all other interest rates remaining unchanged. Which of the following is likely to describe the effect upon the demand for money and the demand for loans?
Money D falls, loan D increases.
Money D and loan D increase.
Money D and loan D fall.
Money D increases, loan D falls.
Which of the following is not the function of the commercial bank?
Issue of currencies
Acceptance of deposits
Advancing loans
Credit control
Who gave their central banks the power to decide the rate of interest ?
Bank Manager
Prime Minister
Finance Minister
Government
A Central Bank is unlikely to be tempted to lower the rate of interest to win the public support.
True
False
