#1
Which institution regulates the banking industry in the United States?
Federal Reserve System
World Bank
International Monetary Fund
European Central Bank
#2
What is the primary function of a central bank?
Issuing currency
Regulating interest rates
Overseeing commercial banks
All of the above
#3
Which of the following is NOT a primary function of a commercial bank?
Accepting deposits
Providing loans
Issuing currency
Facilitating international trade
#4
Which of the following is NOT a function of a central bank?
Conducting monetary policy
Issuing currency
Regulating fiscal policy
Overseeing the banking system
#5
Which of the following is NOT a tool used by central banks to conduct monetary policy?
Open market operations
Fiscal policy
Reserve requirements
Discount rate
#6
What does the term 'Reserve Requirement' refer to in banking?
The minimum amount of reserves a bank must hold
The maximum amount of reserves a bank can hold
The percentage of deposits banks must lend out
The interest rate set by the central bank
#7
What is the role of the lender of last resort in banking?
Providing loans to individuals for personal use
Bailing out failing financial institutions during crises
Regulating interest rates
Issuing currency
#8
What is the primary objective of liquidity management in banking?
To maximize interest rates
To minimize loan defaults
To ensure sufficient cash and marketable securities to meet obligations
To increase operational costs
#9
What is the purpose of a reserve ratio in banking?
To determine the maximum loan amount a bank can offer
To regulate the interest rates banks can charge on loans
To establish the minimum reserves a bank must hold relative to its deposits
To determine the amount of currency a bank can issue
#10
Which of the following is NOT a measure of money supply?
#11
Which of the following is a key objective of reserve management for central banks?
Maximizing inflation
Minimizing foreign exchange reserves
Minimizing interest rate stability
Ensuring liquidity and safeguarding value
#12
What is the purpose of the Basel III accord in banking regulation?
To establish international standards for bank capital adequacy
To regulate investment banking practices
To oversee mergers and acquisitions in the banking sector
To set standards for bank customer service
#13
What does the term 'Asset-Liability Management (ALM)' refer to in banking?
Managing a bank's assets and liabilities to minimize risk
Analyzing stock market trends
Evaluating corporate bonds
Regulating interest rates
#14
What is the function of the Federal Open Market Committee (FOMC) in the United States?
To regulate international trade
To oversee commercial banks
To conduct monetary policy
To set fiscal policy
#15
Which of the following statements about the discount rate is true?
It is the interest rate banks charge each other for overnight loans
It is set by the Federal Reserve and influences other interest rates
It is the interest rate on loans provided by the World Bank
It is determined by individual commercial banks
#16
What does the term 'Moral Suasion' refer to in the context of central banking?
Using persuasive techniques to influence market participants
Legal enforcement of banking regulations
Taxation policies
Investment in socially responsible projects