Question :
Which one of the following is not a function of the central bank in an economy?
Option 1:
Dealing with foreign exchange.
Option 2:
Controlling monetary policy.
Option 3: Controlling government spending.
Option 4: Acting as a banker’s bank.
Correct Answer: Controlling government spending.
Solution : The correct option is Controlling government spending .
The central bank's primary role is centred on monetary policy , which includes tasks such as overseeing interest rates, managing the money supply and safeguarding price stability. In contrast, the responsibility for controlling government spending lies within the domain of fiscal policy, managed by the government's treasury or finance department and, ultimately, the legislative body.
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