Podcast
Questions and Answers
Which of the following best describes the function of money in an economy?
Which of the following best describes the function of money in an economy?
- A medium of exchange and store of value (correct)
- A measure of inflation and a means of credit creation
- A tool for government intervention and a source of economic inequality
- A unit of account and a standard of deferred payments
What is the primary function of the central bank in relation to credit control?
What is the primary function of the central bank in relation to credit control?
- Regulating stock markets and overseeing international trade agreements
- Providing loans to commercial banks and promoting financial inclusion
- Issuing currency and managing government revenue
- Regulating interest rates and controlling money supply (correct)
In a fractional reserve banking system, what happens when a commercial bank makes a loan?
In a fractional reserve banking system, what happens when a commercial bank makes a loan?
- The money supply increases and the bank's reserves decrease (correct)
- The money supply decreases and the bank's reserves increase
- The loan is directly funded by the central bank to ensure liquidity
- The government intervenes to regulate the loan terms and conditions
What is the impact of high levels of non-performing assets (NPAs) on a bank's financial stability?
What is the impact of high levels of non-performing assets (NPAs) on a bank's financial stability?
What is the significance of credit in an economy?
What is the significance of credit in an economy?
How does the central bank control credit in the economy?
How does the central bank control credit in the economy?
What is the main function of money in an economy?
What is the main function of money in an economy?
How does a fractional reserve banking system work when a commercial bank makes a loan?
How does a fractional reserve banking system work when a commercial bank makes a loan?
What is the impact of globalization on national economies?
What is the impact of globalization on national economies?
How does globalization affect cultural exchange?
How does globalization affect cultural exchange?
What role do multinational corporations play in globalization?
What role do multinational corporations play in globalization?
How does globalization impact the movement of labor across borders?
How does globalization impact the movement of labor across borders?
