CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 94 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 94
Topic #: 2

[All CIMAPRA17-BA1-1 Questions]

Central banks fulfill all of the following functions except which?

AHolder of bank accounts on behalf of the commercial banks

BLender of liquidity to the commercial banks

CProvider of capital and liquidity to the government

DChief advisor to government on taxation policy

Show Suggested Answer

Suggested Answer: A, E

by Iola at Aug 09, 2024, 12:08 AM

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Roosevelt

30 days ago

D. Central banks are like economic wizards, but even they can't wave a wand and change tax policy.

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Elza

1 months ago

B, C, D. Central banks are the financial backbone, not tax advisors.

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Willie

10 days ago

B) Lender of liquidity to the commercial banks

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Shoshana

23 days ago

A) Holder of bank accounts on behalf of the commercial banks

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Marjory

2 months ago

Hmm, I thought central banks could do anything. Guess I need to brush up on their actual responsibilities.

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Allene

16 days ago

Yes, they have important functions but they don't advise on taxation policy.

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Christiane

24 days ago

I didn't know that either. Central banks have specific roles after all.

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Amie

28 days ago

D) Chief advisor to government on taxation policy

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Milly

29 days ago

C) Provider of capital and liquidity to the government

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Asuncion

1 months ago

B) Lender of liquidity to the commercial banks

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Erasmo

1 months ago

A) Holder of bank accounts on behalf of the commercial banks

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Paris

2 months ago

A, D. Central banks don't directly advise on taxation policy, that's the finance ministry's job.

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Rupert

2 months ago

Hmm, you might be right. I guess it's important to consider all the functions of central banks before choosing the correct answer.

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Svetlana

2 months ago

I disagree, I believe the answer is C because central banks do provide capital and liquidity to the government.

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Rupert

2 months ago

I think the answer is D, central banks are not advisors on taxation policy.

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