Banks always need a minimum amount of central bank liquidity in order to conduct their business and this is part of their liquidity management operations. Which of the following are activities associated with the central bank's liquidity function?I. Issuing legal tender.II. Safeguarding/restoring financial stability.III. Issuing loans at a higher than market interest rate.IV. Creating a market for illiquid financial assets. Question 7Answer a. II, III and IV only. b. I, II and IV only. c. I, II and III only. d. I, II, III and IV.

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