Question

Identify the correctly matched pair of items in column A to that of Column B:

column A	column B
1. Function of a Central bank	(a) Lending money to public
2. Function of Government	(b) Issuing currency notes
3. Function of a Central bank	(c) Control of credit
4. Function of Government	(d) Creation of credit

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

In an economy, the central bank is the sole note-issuing authority. The Central Bank assumes the role of a monopolist in currency issuance in order to maintain currency uniformity across the country and to centrally control the money supply process. This function also fosters trust in the economy's currency system.