#1
Which of the following is a tool of monetary policy?
Fiscal policy
Interest rates
Taxation
Government spending
#2
What is the primary goal of expansionary monetary policy?
To decrease money supply
To decrease inflation
To increase unemployment
To stimulate economic growth
#3
Which of the following is not a tool of monetary policy?
Open market operations
Reserve requirements
Government spending
Discount rate
#4
What is the term for the total amount of money in circulation within an economy?
Gross domestic product
Money supply
Inflation rate
Budget deficit
#5
What is the term for the process by which the central bank controls the money supply?
Inflation targeting
Money printing
Monetary policy
Interest rate manipulation
#6
Which of the following is not a transmission mechanism of monetary policy?
Interest rates
Exchange rates
Stock prices
Government spending
#7
Which entity typically conducts monetary policy in most countries?
The President
The Federal Reserve
The Treasury Department
The World Bank
#8
What is the term for the interest rate at which a central bank lends money to commercial banks?
Deposit rate
Prime rate
Federal funds rate
Discount rate
#9
What is the term for the purchase and sale of government securities by the central bank?
Open market operations
Bond market manipulation
Asset restructuring
Stock market intervention
#10
What is the term for the rate at which commercial banks can borrow reserves from the central bank?
Prime rate
Discount rate
Federal funds rate
Benchmark rate
#11
What is the term for the rate at which banks lend money to each other overnight?
Prime rate
Federal funds rate
Discount rate
Libor rate
#12
Which of the following is an example of contractionary monetary policy?
Decreasing interest rates
Buying government securities
Reducing reserve requirements
Raising interest rates
#13
Which of the following is a possible consequence of tight monetary policy?
Decreased unemployment
Increased borrowing
Lower inflation
Reduced consumer spending
#14
Which of the following is an effect of expansionary monetary policy?
Increased interest rates
Reduced money supply
Stimulated economic growth
Higher unemployment
#15
What does the term 'Quantitative Easing' refer to in monetary policy?
Reducing interest rates
Buying long-term securities to increase money supply
Increasing reserve requirements
Lowering inflation targets
#16
Which of the following is a consequence of loose monetary policy?
Decreased inflation
Increased borrowing costs
Stimulated economic activity
Reduced money supply
#17
Which of the following is true about the Phillips curve in relation to monetary policy?
It shows a positive relationship between inflation and unemployment.
It suggests that inflation and unemployment are unrelated.
It indicates a negative relationship between inflation and unemployment.
It demonstrates a direct relationship between interest rates and inflation.
#18
Which of the following is a characteristic of a hawkish monetary policy stance?
Lowering interest rates
Encouraging borrowing
Reducing money supply growth
Stimulating economic expansion