#1
Which of the following is NOT a function of central banks?
Regulating money supply
Issuing currency
Conducting monetary policy
Providing consumer loans
#2
What does the term 'FDIC' stand for in banking?
Federal Deposit Insurance Corporation
Financial Data and Information Center
Foreign Deposit Investment Corporation
Federal Debt and Investment Commission
#3
Which of the following is NOT a function of commercial banks?
Issuing currency
Accepting deposits
Lending money
Providing investment advice
#4
Which of the following is NOT a type of deposit account commonly offered by banks?
Checking account
Savings account
Certificate of deposit (CD)
Credit card account
#5
What is the primary function of a central bank?
Regulating money supply
Lending money to individuals
Managing fiscal policy
Issuing government bonds
#6
What is the main purpose of the Federal Deposit Insurance Corporation (FDIC)?
To regulate stock markets
To insure bank deposits
To manage government spending
To oversee international trade
#7
Which of the following is NOT a function of a central bank?
Issuing currency
Supervising commercial banks
Conducting fiscal policy
Conducting monetary policy
#8
Which of the following is a characteristic of fiat money?
Backed by a commodity such as gold
Value determined by supply and demand
Decentralized and anonymous
Value determined by government decree
#9
What is the primary function of a commercial bank?
Issuing currency
Lending money and accepting deposits
Conducting monetary policy
Regulating money supply
#10
What is the term for the interest rate at which the central bank lends to commercial banks?
Prime rate
Discount rate
LIBOR
Federal funds rate
#11
What is the purpose of a reserve requirement set by central banks?
To regulate the interest rates
To control inflation
To ensure banks maintain a minimum level of reserves
To stabilize exchange rates
#12
Which of the following is NOT a characteristic of fractional reserve banking?
Banks hold only a fraction of deposits as reserves
Allows banks to create money through lending
Eliminates the risk of bank runs
Can lead to credit expansion
#13
What is the term for the interest rate at which banks lend to each other overnight?
Prime rate
Discount rate
Federal funds rate
LIBOR
#14
What is the term for the rate at which the central bank buys government securities from commercial banks?
Discount rate
Prime rate
Federal funds rate
Repo rate
#15
What is the purpose of Open Market Operations (OMO) conducted by central banks?
To control inflation by regulating interest rates
To stabilize exchange rates
To purchase and sell government securities in the open market
To directly control the money supply
#16
What is the role of the Federal Reserve System in the United States?
To regulate and supervise banks
To conduct monetary policy
To provide financial services to banks
All of the above
#17
What is the function of the SWIFT network in banking?
To facilitate international communication between banks
To regulate interest rates
To issue credit cards
To manage government bonds