Practice Central Bank - 3.1 | Chapter 3: Money and Banking | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the main role of the central bank?

πŸ’‘ Hint: Think about what central banks do in relation to money supply.

Question 2

Easy

Who does the central bank serve?

πŸ’‘ Hint: Consider the institutions that manage currency.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the primary responsibility of a central bank?

  • Control fiscal policy
  • Manage monetary policy
  • Provide commercial banking services

πŸ’‘ Hint: Think about what influences the economy's financial health.

Question 2

True or False: The central bank can lend money to commercial banks during financial crises.

  • True
  • False

πŸ’‘ Hint: Consider what happens when banks need quick funds.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If the central bank decides to lower interest rates, what are the potential consequences for inflation and economic growth?

πŸ’‘ Hint: Think about the relationship between borrowing costs and spending.

Question 2

Explain how a central bank's regulation of commercial banks can prevent financial crises.

πŸ’‘ Hint: Consider the implications of banks lending recklessly.

Challenge and get performance evaluation