5 Questions
What is the role of the National Bank of Ethiopia in managing international reserves?
Set limits on gold and silver bullion and foreign exchange assets, and manage and administer international reserves.
What is the purpose of refinancing facilities provided by the National Bank of Ethiopia to banks and other financial institutions?
To provide short-term and long-term refinancing facilities to banks and other financial institutions as necessary.
What is the objective of credit risk management policies in banking?
To limit or reduce credit risk and classify assets to ensure the collectability of credit instruments.
How do central banks influence economic growth and inflation?
Through monetary policy decisions, such as setting interest rates, which can impact business confidence, inflation, and economic growth.
What is the significance of portfolio management in financial institutions?
To diversify and manage assets to minimize risk and maximize returns.
Test your understanding of how interest rates impact investment decisions, including the effects on borrowing costs, opportunity costs, and investment returns. Learn how economic growth and demand also influence investment behavior.
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