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