Central banks inspect and sometimes set minimum limits on the reserves held by commercial banks.

CIMA BA1 Question Answer

Central banks inspect and sometimes set minimum limits on the reserves held by commercial banks. Which ONE of the following statements is NOT a reason that central banks seek to influence the reserves of commercial banks?

To influence commercial banks' ability to create credit

To avoid the commercial banks running out of liquidity

To regulate the profits of commercial banks

To prevent the collapse of the banking system

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Update on: Feb 7, 2026
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Central banks inspect and sometimes set minimum limits on the reserves held by commercial banks.

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