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Central Banking

Total questions: 13

Worksheet time: 12mins

Name
Class
Date
1.

Banks would probably start taking too many risks if

a)

their monetary policy is successful

b)

they could always be sure of being rescued by central bank

c)

there is a run on a commercial bank

d)

financial situation is stable

2.

What is the potential consequence if banks could always be sure of being rescued by the central bank?

a)

They would take fewer risks

b)

They would take more risks

c)

They would maintain the same level of risk

d)

They would go bankrupt

3.

The Central Bank sometimes lends money if

a)

a commercial bank is in trouble

b)

they print and distribute a lot of money

c)

there is a run on a commercial bank

d)

its monetary policy is successful

4.

What is the role of the Central Bank when a commercial bank is in trouble?

a)

To print and distribute a lot of money

b)

To ensure the stability of the financial system

c)

To encourage the commercial bank to take more risks

d)

To maintain the same level of risk

5.

Under what circumstances would a commercial bank be at risk of going bankrupt?

a)

When the central bank intervenes

b)

When there is a run on the bank

c)

When the financial situation is stable

d)

When the bank takes fewer risks

6.

The functions of central banks are

a)

to control of the rate of inflation

b)

to maintain financial stability

c)

to supervise and regulate the banking system

d)

to lend money to commercial banks

7.

a bank run

a)

банковский займ

b)

бегство из банка

c)

банковая паника

d)

банкротство

8.

What is the primary function of the Central Bank in relation to commercial banks?

a)

To regulate the interest rates

b)

To ensure the stability of the financial system

c)

To encourage the commercial bank to take more risks

d)

To maintain the same level of risk

9.

How would the behavior of commercial banks change if they were not always rescued by the central bank?

a)

They would take fewer risks

b)

They would take more risks

c)

They would maintain the same level of risk

d)

They would go bankrupt

10.

What impact does the central bank's intervention have on the risk of a commercial bank going bankrupt?

a)

It reduces the risk

b)

It increases the risk

c)

It has no impact on the risk

d)

It stabilizes the risk

11.

кредитор последней инстанции

a)

moneylender

b)

creditor of an instance

c)

lender of last resort

d)

last creditor

12.

supply and demand

a)

резервы и оценочные обязательства

b)

расходы и доходы

c)

спрос и предложение

d)

дебет и кредит

13.

exchange rate

a)

ставка по депозитам

b)

обменный курс

c)

спрос и предложение

d)

доходы и расходы