CAIIB · CB · Chapter 1

Theory and Practice of Central Banking Evolution

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.

70 one-liners 1 PDF note
Quick revision

One-liners from this chapter

Free sample — 8 of 70 rapid-fire Q&A cards.

Q

Which is recognised as the world's first central bank and in which year was it established?

A

Sveriges Riksbank, Sweden, established in 1668.

Q

In which year was the Riksbank endowed with the monopoly of note issue?

A

In 1897.

Q

In which year was the Bank of England founded and under what instrument?

A

1694, under a Royal Charter of the United Kingdom.

Q

By what nickname is the Bank of England popularly known?

A

The Old Lady of Threadneedle Street.

Q

Who initiated the Bank of England and how much did he raise?

A

Scotsman William Paterson, who raised £1.2 million by subscription and lent it to the Government.

Q

Which crisis did the Bank of England survive, marking the first practical lender-of-last-resort exercise?

A

The South Sea Bubble crash of the 1720s.

Q

Which Act granted the Bank of England a monopoly of note issue in England and Wales?

A

The Bank Charter Act, 1844.

Q

When was the Bank of England nationalised and when given operational independence?

A

Nationalised in 1946; granted operational independence in 1997 by Chancellor Gordon Brown.

Unlock all 70 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck
Read & revise

PDF study notes

Master the full CB syllabus

Every chapter of Central Banking (Elective) — videos, tests, notes and one-liner decks in one place.