4. Central bank is the bankers to the general public.5. The disequilibrium of aggregate demand and supply merely cause inflation.Part II: Choose the correct answer among the give alternatives (2pt)1. One of the following is not the agency services of the commercial bank:A. Accepting standing instruction from customersB. Income tax consultancyC. Collection of credit instrumentsD. RemittancesE. None of the above2. Which of the following instrument are elements of secondary reserves?A. Bank loans ?? C. Long term commercial papersB. Governments bonds ?? D. Treasury bill E. All of the above3. Which one of the following is true about the central bank?A. Is it's the banker's bankB. Has the monopoly to issue a moneyC. Non-profit institutionsD. None of the above4. Which of the following factor is not the demand side cause of inflation?A. High money supply C. Artificial scarcitiesB. Credit- Induced inflation. D. Payment of public debt E. All of the above5. Among the following, which one is the function of the central bank?A. Supervising commercial banksB. Inspecting accounts of all banksC. Issuing license to newly established banksD. All of the aboveE. None of the above.6. Identify the necessary precaution that needs to be taken by the banker while paying for a cheque.A. Precaution regarding crossingB. Precaution regarding DateC. Precaution regarding Drawer's signatureD. Precaution regarding Availability of sufficient fundE. All of the above7. Which one of the following is not the part of the financial system?A. National bank of Ethiopia ???C. Commercial banksB. Bond??????D. Insurance certificates E. None8. A Sustained rise in the general level of prices brought about by high rate of expansions in aggregate money supply isA. Deflation C. HoardingB. Inflation D. Dishoarding9. If deficit in the budget is financed by money creator that is printing money ends in inflation through:A. Money supply riseB. Increasing the aggregate demandC. Leading to price increaseD. All of the above

4. Central bank is the bankers to the general public. 5. The disequilibrium of aggregate demand and supply merely cause inflation. Part II: Choose the correct answer among the give alternatives (2pt) 1. One of the following is not the agency services of the commercial bank: A. Accepting standing instruction from customers B. Income tax consultancy C. Collection of credit instruments D. Remittances E. None of the above 2. Which of the following instrument are elements of secondary reserves? A. Bank loans C. Long term commercial papers B. Governments bonds D. Treasury bill E. All of the above 3. Which one of the following is true about the central bank? A. Is it's the banker's bank B. Has the monopoly to issue a money C. Non-profit institutions D. None of the above 4. Which of the following factor is not the demand side cause of inflation? A. High money supply C. Artificial scarcityes B. Credit- Induced inflation. D. Payment of public debt E. All of the above 5. Among the following, which one is the function of the central bank? A. Supervising commercial banks B. Inspecting accounts of all banks C. Issuing license to newly established banks D. All of the above E. None of the above. 6. Identify the necessary precaution that needs to be taken by the banker while paying for a cheque. A. Precaution regarding crossing B. Precaution regarding Date C. Precaution regarding Drawer's signature D. Precaution regarding Availability of sufficient fund E. All of the above 7. Which one of the following is not the part of the financial system? A. National bank of Ethiopia C. Commercial banks B. Bond D. Insurance certificates E. None 8. A Sustained rise in the general level of prices brought about by high rate of expansions in aggregate money supply is A. Deflation C. Hoarding B. Inflation D. Dishoarding 9. If deficit in the budget is financed by money creator that is printing money ends in inflation through: A. Money supply rise B. Increasing the aggregate demand C. Leading to price increase D. All of the above