Three jobs of the central bank

Exercise and reference answers

Items

1. Group

   Policy tools

   Item

   Open market ops

2. Group

   Policy tools

   Item

   Discount rate

3. Group

   Policy tools

   Item

   Reserve rules

4. Group

   Regulation

   Item

   Capital rules

5. Group

   Regulation

   Item

   Risk limits

6. Group

   Run defence

   Item

   Deposit cover

7. Group

   Run defence

   Item

   Last resort aid

Groups

1. Item

   Policy tools

2. Item

   Regulation

3. Item

   Run defence

Instructions

Drop each item into the job it belongs to.

Explanation