Exam-Oriented Revision Sheet
1. What is the primary role of central banks in the financial system?
2. Which of the following best describes a floating interest rate?
3. Why is financial literacy important in the context of financial inclusion?
Financial system — components?
Institutions, markets, products, infrastructure, regulators
Money creation — mechanism?
Central and commercial banks generate money via policy and lending
Interest rate — role?
Price of money, influences borrowing and investment
Financial system components?
Institutions, markets, products, regulators, infrastructure.
Money creation mechanism?
Central and commercial banks via lending and policy.
Interest rate influences?
Policy rates, supply-demand, market expectations.
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