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