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