Role of Central Bank Malaysia Q8

Q.
Describe four (4) main roles of the Central Bank of Malaysia.

(20 marks, 2019 Q8)

A.

Similar question was asked in:

2017 Q3b
2011 Q7b

Although the question specified 4 main roles, below are common functions of Central Bank.

  1. Issuance of notes
  2. Regulation and supervision of the financial system
  3. Bankers’ bank
  4. Lender of the last resort
  5. Banker to Government and
  6. Conduct of monetary policy.
  7. Agency functions like management of public debt
  8. Management of foreign exchange etc.,
  9. And other functions like advising the government on policy matters
  10. Maintaining close relationships with international financial institutions.

Ref:
Earlier posts.

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