Podcast
Questions and Answers
Which tool is NOT available to central banks for monetary policy?
Which tool is NOT available to central banks for monetary policy?
- Reserve requirements
- Discount rate (correct)
- Open market operations
- Refinancing rate
What are the three key concepts thought to be important for the success of central banks?
What are the three key concepts thought to be important for the success of central banks?
- Central bank accountability, flexibility, and efficiency
- Central bank autonomy, stability, and secrecy
- Central bank independence, credibility, and transparency (correct)
- Central bank regulation, supervision, and profitability
Which of the following is NOT a role of central banks in modern economies?
Which of the following is NOT a role of central banks in modern economies?
- Regulator and supervisor of the payments system
- Monopoly supplier of the currency
- Banker to the government and the bankers’ bank
- Lender of first resort (correct)
What is the primary role of central banks in relation to the domestic currency?
What is the primary role of central banks in relation to the domestic currency?
What were promissory notes issued by in the earliest form of money?
What were promissory notes issued by in the earliest form of money?
What was money initially convertible into in its earliest form?
What was money initially convertible into in its earliest form?
What are the two types of institutions mentioned in the text as being designated as the monopoly suppliers of a currency?
What are the two types of institutions mentioned in the text as being designated as the monopoly suppliers of a currency?
What are the two main roles of central banks in relation to the banking system?
What are the two main roles of central banks in relation to the banking system?
What are the three primary tools available to central banks for monetary policy?
What are the three primary tools available to central banks for monetary policy?
How many roles of central banks are mentioned in the text?
How many roles of central banks are mentioned in the text?
Which principle did most major economies abandon in the first half of the twentieth century?
Which principle did most major economies abandon in the first half of the twentieth century?
Which term refers to money that is not convertible into any other commodity?
Which term refers to money that is not convertible into any other commodity?
What role do central banks play in modern economies?
What role do central banks play in modern economies?
What is the role of central banks in the payments system?
What is the role of central banks in the payments system?
What is the significance of central banks being the sole suppliers of domestic currency?
What is the significance of central banks being the sole suppliers of domestic currency?
What is the term for money that must be accepted when offered in exchange for goods and services?
What is the term for money that must be accepted when offered in exchange for goods and services?
What is the role of central banks as lenders of last resort?
What is the role of central banks as lenders of last resort?
Which role is NOT assumed by central banks?
Which role is NOT assumed by central banks?
What is the primary objective of most central banks?
What is the primary objective of most central banks?
What is the term for money that derives its value through government decree and acceptance for payment of goods and services?
What is the term for money that derives its value through government decree and acceptance for payment of goods and services?
What could potentially happen if central banks decide to sell significant proportions of their gold reserves?
What could potentially happen if central banks decide to sell significant proportions of their gold reserves?
What is the role of central banks in managing foreign currency reserves?
What is the role of central banks in managing foreign currency reserves?
What does monetary policy refer to?
What does monetary policy refer to?
What is the term for money that can be redeemed for a prespecified amount of gold?
What is the term for money that can be redeemed for a prespecified amount of gold?
What is the highest profile role that central banks assume?
What is the highest profile role that central banks assume?
What is one of the roles of central banks in relation to the banking system?
What is one of the roles of central banks in relation to the banking system?
What is the ideal position of central banks in implementing and determining monetary policy?
What is the ideal position of central banks in implementing and determining monetary policy?
What are the objectives of monetary policy related to?
What are the objectives of monetary policy related to?
What is NOT mentioned as an objective of central banks?
What is NOT mentioned as an objective of central banks?
What is one of the roles of central banks in relation to the government?
What is one of the roles of central banks in relation to the government?
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