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CIMAPRA17-BA1-1 Exam - 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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Leslie

9 months ago

Totally agree, D is the odd one out here!

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Ligia

10 months ago

Wait, they don't provide capital to the government? Really?

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Carlee

10 months ago

They hold accounts for commercial banks, that's a fact.

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Ronnie

10 months ago

I thought they advised on taxation too? Seems off.

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Fletcher

10 months ago

Central banks definitely lend liquidity to commercial banks.

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Kattie

10 months ago

I’m a bit confused; I thought central banks provided liquidity to the government too, but maybe that’s not their primary role?

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Alise

11 months ago

I feel like option D could be the answer since central banks focus on monetary stability rather than taxation.

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Johnna

11 months ago

I remember practicing a question similar to this, and I think the central bank's role is more about monetary policy than advising on taxes.

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Abel

11 months ago

I think central banks do hold accounts for commercial banks, but I'm not sure about the taxation policy part.

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Lea

11 months ago

I'm confident the answer is D. Central banks provide economic advice to the government, but they don't get involved in taxation policy - that's the job of the finance ministry or treasury department.

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Karma

11 months ago

Okay, let me think this through. Central banks are the lender of last resort, they set monetary policy, and they manage the money supply. I'm pretty sure they don't advise on taxation policy, so I'll go with D.

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Jaleesa

11 months ago

Hmm, I'm a bit unsure about this one. I know central banks have a lot of functions, but I'm not totally sure which one they don't fulfill.

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Gretchen

11 months ago

This question seems straightforward, I think I can eliminate a few of the options pretty quickly.

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Carman

11 months ago

I'm pretty confident that the correct answer is B. Services do require post-implementation integration effort to achieve interoperability, and simply using the same design standards is not enough to ensure that. The statement is incorrect in that regard.

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Norah

11 months ago

This seems like a straightforward question about identifying the right stakeholder to approve database access. I'll need to carefully consider the options and think about who would have that authority.

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Celestina

11 months ago

Key steps: track purchase dates, use correct cost inflation index, calculate long-term vs short-term gains for each share lot.

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Roosevelt

1 year ago

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

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Lilli

1 year ago

C) Provider of capital and liquidity to the government

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Cora

1 year ago

B) Lender of liquidity to the commercial banks

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Jame

1 year ago

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

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Elza

1 year ago

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

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Hollis

1 year ago

C) Provider of capital and liquidity to the government

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Willie

1 year ago

B) Lender of liquidity to the commercial banks

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Shoshana

1 year ago

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

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Marjory

1 year ago

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

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Allene

1 year ago

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

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Christiane

1 year ago

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

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Amie

1 year ago

D) Chief advisor to government on taxation policy

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Milly

1 year ago

C) Provider of capital and liquidity to the government

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Asuncion

1 year ago

B) Lender of liquidity to the commercial banks

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Erasmo

1 year ago

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

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Paris

1 year ago

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

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Rupert

1 year 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

1 year 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

1 year ago

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

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