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Questions and Answers
Which of the following is a primary function of a Central Bank?
What is a Central Bank's role in the financial system?
Which function is NOT a primary function of a Central Bank?
What is a secondary function of a Central Bank?
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What is the purpose of a Central Bank's management of public debt?
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What is the main objective of a Central Bank's lender of last resort function?
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Which of the following functions is common to both primary and secondary functions of a Central Bank?
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What is the primary function of a Central Bank related to the conduct of?
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Which secondary function of a Central Bank involves advising the government on?
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What is the primary function of a Central Bank related to the issuance of?
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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.
