BA 4158 (Money & Banking) Midterm Exam Q & S 2024

BA 4158




Money & Banking




MIDTERM EXAM
Q&S




©2024/2025

, 1. Which of the following is a primary function of the central
bank?
- A) Regulating interest rates on mortgages
- B) Printing and issuing currency
- C) Providing loans to SMEs
- D) Setting taxation policies
- Answer: B) Printing and issuing currency
- Rationale: Central banks are responsible for issuing currency
and managing monetary policy.


2. In the context of the money supply, M1 typically includes:
- A) Savings deposits
- B) Large time deposits
- C) Currency in circulation
- D) Mutual funds
- Answer: C) Currency in circulation
- Rationale: M1 includes the most liquid forms of money such
as currency in circulation and demand deposits.



©2024/2025