#1
Which of the following is not a function of a central bank?
Issuing currency
Regulating interest rates
Providing consumer loans
Supervising commercial banks
#2
What is the primary purpose of a commercial bank?
Issuing government bonds
Providing liquidity to the market
Maximizing profits for shareholders
Accepting deposits and lending money
#3
What is the term used to describe the process of converting assets into cash?
Liquidity
Solvency
Derivatives
Arbitrage
#4
Which of the following is NOT a characteristic of money?
Durability
Liquidity
Intrinsic value
Scarcity
#5
What is the primary function of a credit union?
Issuing government bonds
Providing liquidity to the market
Maximizing profits for shareholders
Providing financial services to members
#6
Which financial institution acts as a facilitator between borrowers and lenders?
Commercial bank
Investment bank
Credit union
Mutual fund
#7
What is the primary role of the International Monetary Fund (IMF)?
Providing loans to developing countries
Regulating global stock markets
Issuing international currency
Promoting international trade agreements
#8
What is the term used to describe the interest rate at which the central bank lends money to commercial banks?
Prime rate
Discount rate
LIBOR
Federal funds rate
#9
Which of the following is not a function of a stock exchange?
Facilitating trading of securities
Providing liquidity to investors
Regulating monetary policy
Setting stock prices
#10
What is the primary function of a hedge fund?
Providing loans to small businesses
Pooling investments from multiple investors
Issuing government bonds
Facilitating international trade
#11
What is the term used to describe the practice of investing in multiple asset classes to reduce risk?
Asset allocation
Arbitrage
Derivatives trading
Leverage
#12
Which financial institution acts as a lender of last resort during financial crises?
Commercial bank
Investment bank
Central bank
Mutual fund
#13
Which financial institution is responsible for overseeing the monetary policy of the United States?
World Bank
Federal Reserve
European Central Bank
Bank of England
#14
Which financial institution is responsible for supervising and regulating banks in the European Union?
European Investment Bank
European Central Bank
European Banking Authority
European Securities and Markets Authority
#15
What is the primary function of the Securities and Exchange Commission (SEC) in the United States?
Issuing currency
Regulating interest rates
Protecting investors and maintaining fair and orderly markets
Providing consumer loans
#16
Which financial institution regulates and supervises the insurance industry in the United States?
Federal Reserve
Securities and Exchange Commission
Federal Deposit Insurance Corporation
National Association of Insurance Commissioners
#17
Which of the following is NOT a characteristic of a traditional central bank?
Independence from government control
Regulating monetary policy
Issuing government bonds
Supervising commercial banks
#18
Which financial institution is responsible for regulating and supervising the banking industry in the United Kingdom?
Bank of England
Financial Conduct Authority
European Central Bank
HM Treasury