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