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Central Banking by Masaaki Shirakawa
Contributed by: Drake
  • 1. Who is the author of 'Central Banking'?
A) Alan Greenspan
B) Janet Yellen
C) Ben Bernanke
D) Masaaki Shirakawa
  • 2. Which of the following is a tool used by central banks?
A) Personal loans
B) Open market operations
C) Mortgage lending
D) Credit cards
  • 3. What does the monetary policy aim to achieve?
A) Reducing government spending
B) Price stability
C) Promotion of exports
D) Increasing taxes
  • 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) Limits information access
B) Increases policy effectiveness
C) Builds public trust and accountability
D) Reduces government control
  • 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) Providing liquidity to banks
B) Insuring deposits
C) Managing fiscal budgets
D) Creating currency
  • 8. In terms of crisis management, what is a 'bailout'?
A) The act of raising interest rates
B) A reduction in currency supply
C) An investment in stocks
D) Financial assistance to prevent failure
  • 9. What does the term 'exchange rate stability' imply for a central bank?
A) Maintaining currency value
B) Increasing interest rates
C) Controlling government expenditure
D) Boosting trade deficits
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