Economics · May / June 2017 · Paper 12 · Question 8

Which statement about financial matters is correct?

1. ACommercial banks’ main activity is the finance of international trade.
2. BPaper banknotes possess all the desirable properties needed to act as money.
3. CStock exchanges trade mainly in second-hand stocks and shares.
4. DThe central bank acts as the lender of last resort to companies facing bankruptcy.

As printed in the paper