I.TRUE OR FALSE

Direction: Read the statements and identify whether True or False.

1- Central Bank is an International bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.

2- One of the main functions of a central bank It acts as the official agent to the government in dealing with all its gold and foreign exchange matters.

3- Income policy relates to changes in the level and structure of government spending and taxation designed to influence the economy.

4- Solvency- is the ability of the bank to ultimately meet its all obligations. It means that the value of assets is greater than liability.

5- Investment Bank is a type of financial institution that provides services such as accepting deposits, making business loans, and offering basic investment products.

II. Listing with brief explanation.

Direction: Answer the following questions with appropriate examples as instructed.

1- The relationship between Liquidity & Solvency

2- The main functions of a Central Bank.