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Identify the correct statements from the following:
A. Currency is issued by the nation’s Central Bank
B. To address the budget deficit, Central Bank sends money to the government
C. The economy’s foreign exchange reserves are preserved by Central Bank
D. Central Bank does not control money supply and credit through monetary policy
E. Central Bank gives loans to the com mercial Banks for short term
Choose the correct answer from the options given below:
A. Currency is issued by the nation’s Central Bank
B. To address the budget deficit, Central Bank sends money to the government
C. The economy’s foreign exchange reserves are preserved by Central Bank
D. Central Bank does not control money supply and credit through monetary policy
E. Central Bank gives loans to the com mercial Banks for short term
Choose the correct answer from the options given below:
- a)B, C, D, E only
- b)A, B, C, D only
- c)B, C, D, A only
- d)A, B, C, E only
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Identify the correct statements from the following:A. Currency is issu...
The correct statements are:
- Currency Issuance: Currency is issued by the nation's Central Bank. This is one of the primary functions of a central bank, as it is responsible for managing the nation's money supply.
- Foreign Exchange Reserves: The economy's foreign exchange reserves are preserved by the Central Bank. This helps ensure that the country has enough foreign currency to support its international trade and financial transactions.
- Monetary Policy: Central Bank does control money supply and credit through monetary policy. By adjusting interest rates, reserve requirements, or other financial tools, the central bank can influence the overall money supply and credit conditions in the economy.
- Short-Term Loans to Commercial Banks: Central Bank gives loans to commercial banks for short term. This is done through a process called "discounting" or "lending," where the central bank provides funds to commercial banks at a predetermined interest rate. This helps maintain liquidity in the banking system and ensures that banks have access to funds when needed.
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Community Answer
Identify the correct statements from the following:A. Currency is issu...
Explanation:
Currency Issuance:
- Currency is indeed issued by the nation's Central Bank. It is responsible for printing and distributing physical currency as well as controlling the money supply in the economy.
Foreign Exchange Reserves:
- The economy's foreign exchange reserves are indeed preserved by the Central Bank. These reserves are crucial for stabilizing the country's currency value and for international trade.
Monetary Policy:
- The Central Bank controls the money supply and credit through monetary policy. It uses tools like interest rates, reserve requirements, and open market operations to influence economic activity.
Commercial Bank Loans:
- Central Bank typically does not give loans to commercial banks for short term. Instead, it regulates the banking sector and acts as a lender of last resort in times of financial crisis.
Therefore, the correct statement is option 'D' - A, B, C, E only.
Currency Issuance:
- Currency is indeed issued by the nation's Central Bank. It is responsible for printing and distributing physical currency as well as controlling the money supply in the economy.
Foreign Exchange Reserves:
- The economy's foreign exchange reserves are indeed preserved by the Central Bank. These reserves are crucial for stabilizing the country's currency value and for international trade.
Monetary Policy:
- The Central Bank controls the money supply and credit through monetary policy. It uses tools like interest rates, reserve requirements, and open market operations to influence economic activity.
Commercial Bank Loans:
- Central Bank typically does not give loans to commercial banks for short term. Instead, it regulates the banking sector and acts as a lender of last resort in times of financial crisis.
Therefore, the correct statement is option 'D' - A, B, C, E only.
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Identify the correct statements from the following:A. Currency is issued by the nation’s Central BankB. To address the budget deficit, Central Bank sends money to the governmentC. The economy’s foreign exchange reserves are preserved by Central BankD. Central Bank does not control money supply and credit through monetary policyE. Central Bank gives loans to the com mercial Banks for short termChoose the correct answer from the options given below:a)B, C, D, E onlyb)A, B, C, D onlyc)B, C, D, A onlyd)A, B, C, E onlyCorrect answer is option 'D'. Can you explain this answer?
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ample number of questions to practice Identify the correct statements from the following:A. Currency is issued by the nation’s Central BankB. To address the budget deficit, Central Bank sends money to the governmentC. The economy’s foreign exchange reserves are preserved by Central BankD. Central Bank does not control money supply and credit through monetary policyE. Central Bank gives loans to the com mercial Banks for short termChoose the correct answer from the options given below:a)B, C, D, E onlyb)A, B, C, D onlyc)B, C, D, A onlyd)A, B, C, E onlyCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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