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