#1
Which of the following is a tool of monetary policy?
Fiscal Policy
Open Market Operations
Trade Policy
Industrial Policy
#2
What is the main objective of monetary policy?
Maximizing GDP growth
Minimizing inflation
Maintaining price stability and full employment
Regulating government spending
#3
What is the term used to describe a situation where the price level of goods and services is consistently rising?
Deflation
Stagflation
Hyperinflation
Inflation
#4
Which of the following is a goal of contractionary monetary policy?
Stimulating economic growth
Fighting unemployment
Controlling inflation
Increasing consumer spending
#5
What does GDP stand for in economics?
Gross Domestic Product
Gross Demand Product
General Demand Process
General Domestic Policy
#6
Which of the following is a characteristic of a recession?
High GDP growth
Low unemployment rates
Declining consumer spending
Rising inflation
#7
Which of the following is an example of expansionary monetary policy?
Increasing interest rates
Decreasing money supply
Decreasing reserve requirements
Selling government securities
#8
What is the function of the Federal Reserve System in the United States?
Conducting fiscal policy
Regulating international trade
Overseeing monetary policy and banking system stability
Administering social welfare programs
#9
What is the name of the central bank of the European Union?
Bank of England
Bank of International Settlements
European Central Bank
Federal Reserve System
#10
Which of the following is NOT a tool of monetary policy?
Open Market Operations
Discount Rate
Foreign Exchange Interventions
Tariff Reductions
#11
What is the name of the interest rate banks charge each other for overnight loans?
Prime Rate
Federal Funds Rate
LIBOR
Discount Rate
#12
Which of the following is NOT a measure of money supply?
#13
What is the name of the rate at which the Federal Reserve lends money to commercial banks?
Prime Rate
Discount Rate
Federal Funds Rate
LIBOR
#14
What is the term for the measure of money supply that includes physical currency and checking accounts?
#15
What is the term used to describe a prolonged period of slow economic growth and high unemployment rates?
Inflation
Deflation
Stagflation
Recession
#16
What is the name of the process through which central banks control the money supply by buying or selling government securities?
Quantitative Easing
Reserve Requirements
Open Market Operations
Discount Rate Adjustments
#17
What is the name of the economic theory that suggests government intervention in the form of taxation and spending can stabilize the economy?
Monetarism
Supply-side Economics
Keynesian Economics
Classical Economics