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Free CFA Economics Practice Questions & Answers

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Question 751

A central bank acts as lender of last resort because it can:

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Question 752

The lender-of-last-resort function helps prevent:

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Question 753

A central bank’s role in the payments system includes:

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Question 754

Central banks hold foreign currency and gold reserves primarily to:

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Question 755

Selling large amounts of gold reserves could:

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Question 756

The central bank’s highest-profile role is usually:

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Question 757

Monetary policy refers to actions that influence:

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Question 758

A central bank buying government bonds in open market operations will:

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Question 759

Increased bank reserves from open market purchases typically:

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Question 760

Selling government bonds in open market operations will:

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Question 761

When bank reserves fall, lending typically:

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Question 762

The central bank’s policy rate is usually the rate at which it:

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Question 763

A repurchase agreement (repo) is best described as:

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Question 764

When a central bank raises its policy rate, commercial banks typically:

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Question 765

Commercial banks adjust their base rates because:

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Question 766

The Bank of England’s policy rate is known as:

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Question 767

The European Central Bank’s policy rate is known as:

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Question 768

A central bank acting as banker to the government means it:

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Question 769

A central bank acting as banker to banks means it:

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Question 770

The payments system role of a central bank includes:

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Question 771

Central banks coordinate payments systems internationally because:

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Question 772

The overarching objective of most central banks is:

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Question 773

Price stability is important because it:

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Question 774

Open market operations influence money supply by:

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Question 775

When a central bank buys bonds, interest rates generally:

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Question 776

When a central bank sells bonds, interest rates generally:

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Question 777

The money multiplier process refers to:

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Question 778

A central bank’s ability to print money makes it uniquely able to:

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Question 779

A bank run occurs when:

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Question 780

Deposit insurance helps prevent bank runs by:

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Free CFA Economics Practice Questions & Answers

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Before you go, can we ask you one thing?

Thank you