Author Question: Name four of the six primary functions of the central bank.[br][br][b][color=#165FFA]Question ... (Read 110 times)

EY67 · **on:** Jun 30, 2018

Name four of the six primary functions of the central bank.

Question 2

According to the Keynesian school of thought, the economy is not self-regulating. That is, to achieve a satisfactory level of real GDP, the government often has to intervene by managing aggregate demand.
a. True
b. False
Indicate whether the statement is true or false

DylanD1323 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The six primary functions of a central bank are:
to serve as a bankers bank, where members keep cash deposits,
to perform the transfer function between commercial banks of checks and other funds exchanges,
to serve as the major bank for the central government,
to buy and sell foreign currencies and facilitate currency exchange in completing financial transactions,
to be a lender of last resort,
to monitor, regulate, and influence economic activity through the monetary system.

Answer to Question 2

True