Which of the Following Are Primary Functions of a Central

question 47

Multiple Choice

Which of the following are primary functions of a central bank?
I. act as a regulator of banks
II. issue government bonds
III. set monetary policy
IV. regulate dividend payments by corporations

• A) I, II, III, and IV
• B) I, II, and III
• C) I and III
• D) I and II

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Definitions:

Financial Leverage

The use of borrowed funds to increase the potential return on investment, while also increasing the potential risk.

Leasing

A financial agreement in which one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for periodic payments.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Net Advantage

This term could be referring to various contexts and does not have a widely recognized specific financial definition without more context. NO.