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Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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Which activity is commonly carried out by both central banks and commercial banks?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Option A refers to central banks acting as government bankers, which commercial banks typically do not do. Option B involves advising on monetary policy, a role specific to central banks. Option C, dealing in foreign exchange, is an operation performed by both commercial and central banks. Option D, setting the main interest rate, is the responsibility of central banks alone.

Practice related questions from the same subject.

  1. 1.Which of the following best describes deflation?
  2. 2.Under what condition can two nations benefit from engaging in international trade?
  3. 3.Which of the following represents a legitimate form of currency?
  4. 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
  5. 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

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