What are the four functions of money?

A medium of exchange, a method of deferred payment, a unit of value, and a store of value.

A medium of exchange, a unit of value, a store of value, and a method of deferred payment.

A store of value, a medium of exchange, a method of deferred payment, and a unit of value.

A store of value, a method of deferred payment, a medium of exchange, and a unit of value.

What role does a central bank play when acting as a lender of last resort?

It implements monetary policy to control inflation.

It manages tax revenues and payments for the government.

It provides loans to individuals and businesses.

It prevents bank failures by offering emergency liquidity to commercial banks.

How do commercial banks contribute to economic progress through credit provision?

By regulating the stock market and financial institutions.

By facilitating transactions through digital apps and bank transfers.

By extending loans to businesses and individuals for consumption and investment.

By providing platforms for trading in currencies and commodities.

In financial markets, what role do forward markets serve?

Facilitating savings for future needs

Providing trading platforms for currencies and commodities

Enabling transactions through digital apps and bank transfers

Facilitating trading in shares of public companies

What is one of the primary functions of central banks in managing the economy?

Implementing fiscal policies to control inflation

Managing tax revenues and payments for the government

Providing loans to individuals and businesses

Regulating the stock market and financial institutions

Why is durability an essential characteristic of good money?

To ensure wide acceptance in society

To resist damage and maintain longevity

To control the supply and maintain value

To maintain consistency in appearance

How do commercial banks support financial markets through equities trading?

By regulating stock exchanges worldwide

By facilitating trading in shares of public companies

By providing loans for future needs

By offering trading platforms for currencies

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