The principal and interest What is the true definition of Compound interest? Main part amount you are borrowing

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Select the correct listing of Central bank functions: .
Clearing checks and electronic payments
2. Monetary policy (managing the money supply)
3. Emergency lending
4. Financial regulation

Indicate the suitable explanation to “Lender of last resort” function of Central bank.

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  Emergency Lending - Central banks have long lent money to private banks. This lending occurs primarily during financial crises, which threaten banks with failure. During crises, banks need loans to survive, and they cannot get funds from private sources. So the central bank steps in as the lender of last resort.
  

What operations do Central banks carry out?

Central banks carry out a nation's monetary policy and control its money supply, often mandated with maintaining low inflation and steady GDP growth.

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  On a macro basis, central banks influence interest rates and participate in open market operations to control the cost of borrowing and lending throughout an economy.
  
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  Central banks also operate on a micro-scale, setting the commercial banks' reserve ratio and acting as lender of last resort when necessary.
  

What is the primary objective of the European System of Central Banks

The primary objective of the European System of Central Banks is to maintain price stability.

How many European countries are members of European Central Bank?

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  19 euro area countries.
  

What are the components of a Bank’s balance sheet?

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  Liabilities - amounts of money owed to others
  
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  Balance sheet - financial statement that summarizes an entity’s assets, liabilities, and net worth at a given date (Banks have other assets besides loans, and other liabilities besides deposits. A bank’s assets and liabilities are summarized in a statement called a balance sheet,)
  
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