#1
Which central bank is responsible for monetary policy in the United States?
European Central Bank (ECB)
Bank of England (BoE)
Federal Reserve (Fed)
Bank of Japan (BoJ)
#2
What is the term for the interest rate at which commercial banks can borrow reserves from the central bank?
Prime rate
Discount rate
Federal funds rate
LIBOR
#3
In a floating exchange rate system, what primarily determines the value of a currency?
Government interventions
Gold reserves
Supply and demand in the foreign exchange market
Inflation rates
#4
Which organization is responsible for issuing the euro currency?
European Central Bank (ECB)
International Monetary Fund (IMF)
Bank for International Settlements (BIS)
World Bank
#5
What is the term for a situation where the overall price level in an economy is consistently rising?
Deflation
Stagflation
Inflation
Recession
#6
What is the primary tool used by central banks to control the money supply?
Fiscal Policy
Interest Rates
Foreign Exchange Intervention
Quantitative Easing
#7
In the context of currency, what does the term 'fiat money' refer to?
Money backed by a physical commodity
Digital cryptocurrencies
Government-issued currency with no intrinsic value
Foreign exchange reserves
#8
In a fixed exchange rate system, what typically serves as the anchor for the currency's value?
Gold
Oil prices
Foreign exchange reserves
Economic output
#9
What is the primary objective of an expansionary monetary policy?
Stimulating economic growth
Reducing inflation
Controlling the money supply
Stabilizing the exchange rate
#10
What is the term for the ratio of a country's national debt to its Gross Domestic Product (GDP)?
Budget deficit
Debt ceiling
Fiscal policy
Debt-to-GDP ratio
#11
What is the role of the Open Market Operations (OMO) in monetary policy?
Regulating commercial banks' capital requirements
Controlling inflation through interest rates
Buying and selling government securities to influence money supply
Managing the exchange rate
#12
Which of the following is an example of a contractionary monetary policy?
Lowering interest rates
Buying government securities
Increasing reserve requirements
Implementing quantitative easing
#13
What is the significance of the Taylor Rule in the context of monetary policy?
A formula for calculating inflation rates
A guideline for setting interest rates based on economic indicators
A framework for regulating commercial banks
A strategy for implementing quantitative easing
#14
Which of the following is a tool of unconventional monetary policy often used during economic crises?
Quantitative easing
Fixed exchange rates
Taylor Rule
Currency peg
#15
In the context of currency, what does the term 'exchange rate regime' refer to?
Government budgetary policies
System for valuing precious metals
Framework governing how a country's currency value is determined
Foreign exchange intervention strategies