#1
Which of the following is a primary function of a central bank?
Issuing currency
Regulating commercial banks
Collecting taxes
Conducting monetary policy
#2
Who typically appoints the Governor of a central bank?
The President
The Prime Minister
The Board of Directors
The Federal Reserve
#3
What is the main objective of a central bank's monetary policy?
To control fiscal deficit
To stabilize prices and control inflation
To regulate international trade
To promote economic growth
#4
Which of the following is not a tool used in monetary policy by central banks?
Reserve requirements
Discount rate
Foreign exchange rate
Open market operations
#5
What does the term 'Central Bank Independence' refer to?
The ability of central banks to set their own policies without interference from the government
The central bank's loyalty to a specific political party
The central bank's focus on international affairs
The central bank's control over commercial banks
#6
What is the role of a central bank in controlling inflation?
Lowering interest rates
Printing more money
Selling government bonds
Raising interest rates
#7
Which central bank is known as the lender of last resort in the United States?
European Central Bank
Bank of England
Federal Reserve
Bank of Canada
#8
What is the primary goal of a central bank's supervision of commercial banks?
To ensure profitability
To minimize competition
To maintain financial stability
To maximize interest rates
#9
What is the term used to describe the minimum amount of reserves that banks must hold in proportion to their deposits?
Reserve ratio
Liquidity requirement
Capital adequacy ratio
Interest rate
#10
What is the primary function of the Bank for International Settlements (BIS)?
Issuing currency
Regulating monetary policy
Facilitating cooperation among central banks
Providing loans to developing countries
#11
What does the term 'Open Market Operations' refer to in the context of central banking?
Buying and selling government securities
Setting interest rates directly
Regulating reserve requirements
Issuing currency
#12
In which year was the Federal Reserve System established in the United States?
#13
What is the primary tool used by central banks to communicate their monetary policy decisions?
Press conferences
Social media posts
Policy statements
Internal memos
#14
Which of the following central banks was the first to implement quantitative easing (QE) after the 2008 financial crisis?
Federal Reserve
Bank of England
European Central Bank
Bank of Japan
#15
What is the term for the simultaneous purchase and sale of securities to alter the money supply?
Forward guidance
Quantitative easing
Operation twist
Carry trade