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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4 days ago

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

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6 days ago

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

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12 days 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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14 days ago

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

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15 days ago

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

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