Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?
Correct answer: A. Assisting Banks that are in a difficult financial position
- A. Assisting Banks that are in a difficult financial position
- B. Auditing the various agencies and department of the government
- C. Loaning money to other countries that are friendly to the UK.
- D. Issuing new bonds to finance the PSBR.
Explanation
A central bank can support banks facing financial difficulty, acting as lender of last resort to protect the banking system. Auditing government departments, foreign lending, and issuing government bonds are not this banking-system responsibility.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?
When economies speak of the demand for money which of the following are they asking ?
Which of the following events will lead to a decrease in the equilibrium interest rate ?
Which of the following is included in broad money, but not included in narrow money ?
An item designated as money that is intrinsically worthless is ?
Government Securities with terms of more than one year are called ?