Which of the following is NOT a function of the central bank?
Practice Questions
Q1
Which of the following is NOT a function of the central bank?
Issuing currency
Controlling inflation
Providing personal loans
Regulating the banking system
Questions & Step-by-Step Solutions
Which of the following is NOT a function of the central bank?
Step 1: Understand what a central bank is. A central bank is a financial institution that manages a country's currency, money supply, and interest rates.
Step 2: Learn the main functions of a central bank. These include controlling inflation, managing the country's money supply, regulating banks, and acting as a lender of last resort.
Step 3: Identify what a central bank does NOT do. One key function that central banks do not perform is providing personal loans to individuals.
Step 4: Conclude that since providing personal loans is not part of the central bank's responsibilities, it is the correct answer to the question.
