Economics 2281 · O Level · Money and banking

Money and banking — practice question

Which of the following statements about financial matters is correct?

  • ACommercial banks’ main activity is the finance of international trade.
  • BPaper banknotes possess all the desirable properties needed to act as money.
  • CStock exchanges trade mainly in second-hand stocks and shares.
  • DThe central bank acts as the lender of last resort to companies facing bankruptcy.

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