Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______The world’s first central bank was created as a joint stock bank to provide financing for the government and clearing services for business firms.
2._______The focus of the Bank of England was shifted to the management of the national currency when the wars between Britain and France came to an end.
3._______Because the French Revolution caused rocketing prices in the country,the French government decided to set up Banque de France to deal with the problem.
4._______The Bank of Japan was created in the late 18th century to accommodate the government’s financing needs as well as manage the revenues from its trade with Britain.
5._______The Swedish National Bank was founded in the early 1900s with the exclusive right to issue banknotes.
6._______The monetary policy formulated by the European Central Bank has to be carried out by the individual national central banks of the Eurozone member states.
7._______A central bank acts as a fiscal agent in that it participates on behalf the government in negotiations with international financial organizations such as the IMF and World Bank.
8._______Although the central bank performs the role of lender of last resort,it is never responsible for bailing out financial institutions in financial difficulties.
9._______When one bank fails,it may cause other banks to fail,which may eventually lead to a systemic failure.
10._______When a central bank targets rising inflation,it is likely to lower the discount rate.