#1
What is the main function of the Securities and Exchange Commission (SEC)?
Regulating stock exchanges
ExplanationSEC oversees securities markets, ensuring fair practices and investor protection.
#2
Which of the following is NOT considered a fiscal policy tool?
Monetary policy
ExplanationMonetary policy is controlled by central banks, while fiscal policy is set by governments.
#3
Which economic concept refers to the increase in the general price level of goods and services over time?
Inflation
ExplanationInflation erodes purchasing power, leading to higher prices for goods and services.
#4
What is the term used to describe the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
ExplanationGDP measures a country's economic output over a specific time frame.
#5
What is the term for a situation where a country imports more goods and services than it exports?
Trade deficit
ExplanationTrade deficit occurs when a country's imports exceed its exports.
#6
Which event marked the end of the Great Depression in the United States?
Entry into World War II
ExplanationWorld War II boosted production and employment, ending the economic slump.
#7
Who was the Federal Reserve Chairman during the 2008 financial crisis?
Ben Bernanke
ExplanationBen Bernanke played a key role in stabilizing the financial system during the crisis.
#8
Which of the following is NOT a leading economic indicator used to predict economic trends?
Gross Domestic Product (GDP)
ExplanationGDP is a lagging indicator reflecting past economic performance, not predicting future trends.
#9
What was the primary objective of the New Deal programs initiated during the Great Depression?
To reduce unemployment and stimulate economic recovery
ExplanationNew Deal aimed at creating jobs, providing relief, and stimulating recovery.
#10
Which act, passed in 1933, aimed to restore confidence in the banking system by insuring deposits?
Banking Act (Glass-Steagall Act)
ExplanationGlass-Steagall Act separated commercial and investment banking, aiming to prevent another financial crisis.