The main responsibility of a Central bank is: Fiscal but not monetary policy Monetary but not fiscal policy Neither monetary or fiscal policy Both monetary and fiscal policy
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Fiscal but not
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Monetary but not fiscal policy
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Neither monetary or fiscal policy
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Both monetary and fiscal policy
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- When a central bank uses its powers over the banking system to engage in “against the business cycle" monetary policy, this is called: countercyclical policy fiscal policy contractionary policy expansionary policyThe two most important functions of central banks are to: Question 12 options: a) execute monetary policy and promote competition in the financial sector. b) execute monetary policy and keep interest rates low. c) execute monetary policy and ensure that there is sufficient home mortgage credit. d) execute monetary policy and act as lender of last resort.Notes and coins issued by a central bank are
- What are the characteristics of the Central Bank.Describe in detail what an independent central bank means for an economy, and why is this confirmation of independence relevant?List four mechanisms which the central bank might use to implement a contractionary monetary policy, and outline how they would work.
- Contrast the actions a central bank would take to increase the quantity of money in the economy with the actions it would take to produce the opposite effectWhat are the effective Central Bank Frameworks?What are the primary goals of a central bank ? Why it is important for the bank to attain these goal .
- All the following statements about a central bank are true except it ________. a. is a public authority b. regulates a nation's depository institutions c. accepts personal deposits d. controls the quantity of moneyFunction of central bankWhich of the following would be most likely to induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease inoil prices. business taxes. income tax rates. investment spending.