Identify which of the following are common functions of the Central Bank: I. Supervising the Stock Market I. Lending to the Commercial Banking Sector II. Lending to the general public IV. Forming and implementing monetary policy a. I, Il and IV only O b. I and III only O C. All of the above O d. Il and IV only

Identify which of the following are common functions of the Central Bank: I. Supervising the Stock Market I. Lending to the Commercial Banking Sector II. Lending to the general public IV. Forming and implementing monetary policy a. I, Il and IV only O b. I and III only O C. All of the above O d. Il and IV only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 3 How are purchases or sales of foreign currency by a central bank are related to monetary policy? OA. a purchase of foreign currency will increase money supply B. a purchase of foreign currency will reduce the nominal exchange rate C. a purchase of foreign currency will reduce money supply O D. a purchase of foreign currency will increase the nominal exchange rate
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Many arguments call for the independence of Central Banks, where others call for some degree of"centralization" of monetary policy actions.Questions:1. In the light of the "Impossible Trinity" concept and the attributes of "Ideal Currency", compare andcontrast centralization versus decentralization of central banks from the government. Highlight thepros and cons of each.2. Give examples of central banks around the world with different degrees of decentralization.3. To what extent, do you think, the Central Bank of Egypt (CBE) can be considered "independent"?Support your answer with examples
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