CIMA BA1 · Chapter 12 · Question 5 of 9
Which of the following is NOT normally a function of a central bank?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Accepting deposits from and making loans to members of the general public
Explanation
Central banks act as banker to the government and to commercial banks, act as lender of last resort, issue notes, manage reserves and conduct monetary policy. Retail banking for the general public is carried out by commercial banks.
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