True or false: the Reserve Bank

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The Reserve Bank is the only institution which can issue currency.

2. Statement is true

   No

   Statement

   Commercial banks issue their own currency notes.

3. Statement is true

   Yes

   Statement

   The Reserve Bank acts as a banker to the government.

4. Statement is true

   Yes

   Statement

   The Reserve Bank decides the percentage of deposits banks must keep as reserves.

Instructions

Decide whether each statement about the Reserve Bank is true or false.

Explanation