Central Bank Functions
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Questions and Answers

Which of the following is a primary function of a Central Bank?

  • Regulation of the financial system (correct)
  • Securing the payment system
  • Advising government on policy matters
  • Management of public debt
  • What is a Central Bank's role in the financial system?

  • Advisor to international institutions
  • Lender of last resort (correct)
  • Lender of first resort
  • Manager of foreign exchange
  • Which function is NOT a primary function of a Central Bank?

  • Management of public debt (correct)
  • Issuance of notes
  • Regulation of the financial system
  • Conduct of monetary policy
  • What is a secondary function of a Central Bank?

    <p>Management of foreign exchange</p> Signup and view all the answers

    What is the purpose of a Central Bank's management of public debt?

    <p>To support the government's financing needs</p> Signup and view all the answers

    What is the main objective of a Central Bank's lender of last resort function?

    <p>To prevent the collapse of the financial system</p> Signup and view all the answers

    Which of the following functions is common to both primary and secondary functions of a Central Bank?

    <p>Regulation of the financial system</p> Signup and view all the answers

    What is the primary function of a Central Bank related to the conduct of?

    <p>Monetary policy</p> Signup and view all the answers

    Which secondary function of a Central Bank involves advising the government on?

    <p>Policy matters</p> Signup and view all the answers

    What is the primary function of a Central Bank related to the issuance of?

    <p>Notes</p> Signup and view all the answers

    Study Notes

    Central Bank Functions

    • Primary functions of Central Banks include:
      • Issuance of notes
      • Regulation of the financial system
      • Lender of last resort
      • Conduct of monetary policy

    Secondary Functions

    • Secondary functions of Central Banks include:
      • Management of public debt
      • Management of foreign exchange
      • Advising government on policy matters
      • Securing the payment system
      • Maintaining relationships with international institutions

    Central Bank Functions

    • Primary functions of Central Banks include:
      • Issuance of notes
      • Regulation of the financial system
      • Lender of last resort
      • Conduct of monetary policy

    Secondary Functions

    • Secondary functions of Central Banks include:
      • Management of public debt
      • Management of foreign exchange
      • Advising government on policy matters
      • Securing the payment system
      • Maintaining relationships with international institutions

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    Description

    Learn about the primary and secondary functions of Central Banks, including note issuance, monetary policy, and management of public debt.

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