Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which of the following is true about the establishment of central banks?
Which of the following is true about the establishment of central banks?
- The Bank of England was founded in the seventeenth century
- Riksbank was the first central bank to be established in the world (correct)
- The Reserve Bank of India was founded before the Federal Reserve
- The Federal Reserve was the first central bank to be established in the world
What is the main purpose of central banks?
What is the main purpose of central banks?
- To manage the country's debt and provide finance to the government (correct)
- To invest in the stock market
- To provide loans to the general public
- To provide finance to the government for social welfare programs
What is Bagehot's dictum?
What is Bagehot's dictum?
- Central banks should not assume the role of lender of last resort in periods of crisis
- Central banks should not lend to banks in periods of crisis
- Central banks should lend freely to banks without any collateral
- Central banks should lend at a high interest rate to banks in periods of crisis (correct)
