Are you a Central Banking Expert?
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Are you a Central Banking Expert?

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@ModernAmetrine

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Questions and Answers

What are the functions performed by central banks?

  • Controlling the risk-taking of financial institutions
  • Regulating financial markets, instruments, and protecting consumers
  • Developing and implementing monetary policy, issuing currency, and providing banking services for the government (correct)
  • Facilitating the payments system and managing financial system liquidity
  • What is the role of the Bank for International Settlements (BIS)?

  • To facilitate central banking cooperation and act as a bank to the central banks (correct)
  • To regulate the risk-taking of financial institutions
  • To manage the funds supply
  • To oversee the operations of the financial system
  • What is the objective of monetary policy according to the Reserve Bank of Australia?

  • Regulating financial markets, instruments, and protecting consumers
  • Providing facilities for the settlement of transactions
  • Controlling the risk-taking of financial institutions
  • Maintenance of a stable currency, full employment, and prosperity and welfare of the people (correct)
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