Central Bank Functions

Description

2016 CSEC Economics (Section 5 - Financial Sector) Quiz on Central Bank Functions, created by Nikolas Reece on 19/05/2016.
Nikolas Reece
Quiz by Nikolas Reece, updated more than 1 year ago
Nikolas Reece
Created by Nikolas Reece over 8 years ago
117
11

Resource summary

Question 1

Question
Which of the following market structures best describes the commercial banking sector of Trinidad and Tobago
Answer
  • oligopoly
  • perfect competition
  • monopoly
  • monopolistic competition

Question 2

Question
One of the functions of the Central Bank is to
Answer
  • Provide businesses with capital
  • Provide aid to countries in need
  • Accept deposits from members of the public
  • Manage the issue of treasury bills

Question 3

Question
Which of the following is NOT a function of the central bank?
Answer
  • It accepts deposits
  • It is a banker for the government
  • It makes loans for commercial banks
  • It issues foreign currency

Question 4

Question
Which of the following is referred to as the banker’s bank?
Answer
  • The World Bank
  • The Central Bank
  • A commercial bank
  • An investment bank

Question 5

Question
“The Central Bank will manage the foreign exchange rate and the reserves levels.”. Which of the following functions of the Central Bank below best describe the statement above:
Answer
  • Lender of last resort
  • Implements monetary policy
  • Banker to the government
  • Manage foreign exchange

Question 6

Question
“The Central Bank manages economic policies which influence the money supply in the economy such as interest rates and bank reserve levels.” Which of the following functions of the Central Bank below best describe the statement above:
Answer
  • Lender of last resort
  • Implements monetary policy
  • Banker to the government
  • Manage foreign exchange

Question 7

Question
“The central bank must always be prepared to help commercial banks when they face liquidity problems’”. Which of the following functions of the Central Bank below best describe the statement above:
Answer
  • Lender of last resort
  • Implements monetary policy
  • Banker to the government
  • Manage foreign exchange

Question 8

Question
The present Governor of the Central Bank of Trinidad and Tobago is
Answer
  • Dr. Alvin Hilaire
  • Dr. Keith Rowley
  • Colm Imbert
  • Jawala Rambarran
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