Central Banking by Masaaki Shirakawa
  • 1. Who is the author of 'Central Banking'?
A) Masaaki Shirakawa
B) Alan Greenspan
C) Ben Bernanke
D) Janet Yellen
  • 2. Which of the following is a tool used by central banks?
A) Credit cards
B) Personal loans
C) Open market operations
D) Mortgage lending
  • 3. What does the monetary policy aim to achieve?
A) Reducing government spending
B) Increasing taxes
C) Price stability
D) Promotion of exports
  • 4. What is the 'lender of last resort' function?
A) Creating currency
B) Providing liquidity to banks
C) Managing fiscal budgets
D) Insuring deposits
  • 5. What does the central bank use interest rates for?
A) To set tax rates
B) To regulate public spending
C) To influence borrowing
D) To manage trade balances
  • 6. Which concept refers to the central bank's framework for policy?
A) Fiscal Policy Framework
B) Trade Policy Framework
C) Monetary Policy Framework
D) Economic Policy Framework
  • 7. What role does transparency play in central banking?
A) Builds public trust and accountability
B) Increases policy effectiveness
C) Reduces government control
D) Limits information access
  • 8. What does the term 'exchange rate stability' imply for a central bank?
A) Increasing interest rates
B) Boosting trade deficits
C) Controlling government expenditure
D) Maintaining currency value
  • 9. In terms of crisis management, what is a 'bailout'?
A) An investment in stocks
B) A reduction in currency supply
C) Financial assistance to prevent failure
D) The act of raising interest rates
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