#1
What is inflation?
An increase in the general price level of goods and services
ExplanationRise in overall prices of goods and services.
#2
What is the Gross Domestic Product (GDP)?
The total value of all goods and services produced within a country in a specific time period
ExplanationSum of all goods and services produced in a country.
#3
What does the term 'opportunity cost' mean in economics?
The cost of forgoing the next best alternative when making a decision
ExplanationPrice of choosing one option over another.
#4
What is the concept of elasticity in economics?
The responsiveness of quantity demanded to a change in price
ExplanationResponsiveness of demand to price changes.
#5
What is a central bank's primary tool for conducting monetary policy?
Open market operations
ExplanationPrimary monetary policy tool.
#6
What is the role of the Federal Reserve in the United States?
Conducting monetary policy and regulating banks
ExplanationResponsibility for monetary policy and bank regulation.
#7
What is a stock market index?
A statistical indicator of the stock market's performance
ExplanationIndicator showing stock market performance.
#8
What is the Phillips Curve in economics?
A curve illustrating the relationship between inflation and unemployment
ExplanationGraph depicting inflation and unemployment connection.
#9
What is a fiscal policy?
A policy that involves government spending and taxation to influence the economy
ExplanationGovernment actions on spending and taxation.
#10
What is the difference between monetary policy and fiscal policy?
Monetary policy involves controlling the money supply and interest rates, while fiscal policy involves government spending and taxation.
ExplanationContrast between money supply control and government spending.
#11
What is the Efficient Market Hypothesis (EMH) in finance?
The idea that financial markets are always perfectly efficient and reflect all available information
ExplanationBelief in market efficiency and information reflection.
#12
What is a hedge fund?
An investment fund that pools capital from accredited individuals or institutional investors
ExplanationPooling capital from investors for investments.
#13
What is the role of the International Monetary Fund (IMF) in the global economy?
To provide financial assistance and stability to countries in need
ExplanationAssisting countries with financial stability.
#14
What is a sovereign wealth fund?
An investment fund owned by a nation's central bank
ExplanationNational central bank's investment fund.
#15
What is the Fisher Effect in finance?
A principle stating that nominal interest rates equal the sum of real interest rates and expected inflation
ExplanationEquating nominal rates to real rates and expected inflation.