5. A Different Side to Banking

Read the below text - it is about international banking. Then answer the questions which follow.

There are some who believe that too loose monetary policy has caused a serious recession that may be similar in seriousness to the Great Depression of the 1930's. Pessimists worry that currency market chaos shows that a major credit crisis is happening which will combine with high inflation and cause economies to contract ie. go into recession. They argue that central banks such as the ECB, the BoE, and the Federal Reserve have allowed too much freedom for risky lending.

According to the European Central Bank- one of the biggest of the central banks which help to manage the world economy- its job is to create the conditions for price stability which will lead to job creation, and economic growth. This it…