#1
Which of the following is a component of GDP?
Government spending
Imports
Investments
All of the above
#2
What does CPI stand for?
Consumer Price Index
Consumer Production Index
Corporate Price Index
Cost Price Index
#3
Which of the following is a tool of fiscal policy?
Taxation
Open market operations
Reserve requirements
Discount rate
#4
Which of the following is NOT a tool of monetary policy?
Open market operations
Fiscal policy
Discount rate
Reserve requirements
#5
What is the name of the institution responsible for setting monetary policy in the United States?
World Bank
European Central Bank
Federal Reserve
Bank of England
#6
Which of the following is NOT a measure of money supply?
#7
Which of the following is a function of the Federal Reserve?
Controlling inflation
Issuing driver's licenses
Regulating international trade
Maintaining military forces
#8
What is the name of the interest rate at which banks lend reserves to each other overnight?
Discount rate
Prime rate
Federal funds rate
LIBOR
#9
What is the Phillips curve used to depict?
The relationship between inflation and unemployment
The relationship between GDP and inflation
The relationship between interest rates and investment
The relationship between government spending and economic growth
#10
What is the name of the organization that sets monetary policy in the Eurozone?
European Central Bank
Bank of England
Federal Reserve
Bank of Japan
#11
What does M1 money supply include?
Currency in circulation
Savings deposits
Time deposits
Corporate bonds
#12
What is the primary goal of expansionary monetary policy?
To reduce inflation
To decrease government spending
To stimulate economic growth
To increase taxes
#13
Which of the following monetary policy tools involves the buying and selling of government securities?
Open market operations
Quantitative easing
Discount window lending
Reserve requirements
#14
What is the name of the rate at which the central bank lends to commercial banks during liquidity shortages?
Federal funds rate
Discount rate
LIBOR
Prime rate
#15
What is the name given to the rate of inflation when it is high and accelerating?
Creeping inflation
Hyperinflation
Stagflation
Deflation
#16
What is the name of the phenomenon where the money supply grows faster than the rate of economic growth, leading to inflation?
Recession
Stagflation
Hyperinflation
Liquidity trap
#17
What is the name of the situation where the economy experiences high unemployment alongside high inflation?
Stagflation
Hyperinflation
Deflation
Recession
#18
What is the name of the theory that suggests changes in the money supply directly affect the price level and, consequently, inflation?
Fiscal theory of the price level
Quantity theory of money
Rational expectations theory
Phillips curve theory