Question 9
Financial InstitutionsWhich of these alternatives is wrong? Central banks are
- A.bankers to the government
- B.bankers to commercial banks
- C.merchant banks
- D.controllers and regulators of the money supply
- E.issuers of bank notes.
Show the answer and explanation
Answer: C (merchant banks)
Explanation
A central bank serves the government and the banks and controls money; it is not a merchant bank.