High School

Which is main function of central bank Mcq?



A.Conduct of monetary policy


B.Lending to the general public


C.Supervising the stock market


D.Lending to the commercial banking system"

Answer :

The main func-tions of the central bank are A. Conduct of mone-tary policy and D. Lend-ing to the commercial bank-ing system.

A central bank is a pub-lic institution that man-ages the currency of a count-ry or group of countries and con-trols the money supply – liter-ally, the amount of money in circulation. The main object-ive of many central ba-nks is price stab-ility.

Central banks are respons-ible for economic and mone-tary policy as well as the sound-ness of the financial sys-tem. These institutions set inte-rest rates and control the money supply of a coun-try. The U.S. Federal Reserve is one of the mo-st power-ful central banks in the wo-rld.

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