#1
Which of the following is a tool of monetary policy?
Fiscal policy
Interest rates
Taxation
Government spending
#2
What does GDP stand for in macroeconomics?
Gross Domestic Product
General Development Plan
Government Department of Production
Growth and Development Pattern
#3
Which of the following is a component of aggregate demand?
Government spending
Interest rates
Consumer savings
Foreign exchange rates
#4
What is the name of the central bank of the United States?
Federal Reserve
Bank of America
Treasury Department
World Bank
#5
Which of the following is NOT a goal of macroeconomic policy?
Price stability
Full employment
Economic growth
Income inequality
#6
What is the term for a situation where the government spends more money than it collects in taxes?
Budget deficit
Budget surplus
National debt
Trade deficit
#7
What is the term used to describe a sustained increase in the general price level of goods and services?
Inflation
Deflation
Stagflation
Disinflation
#8
What is the main function of a central bank?
To regulate interest rates
To manage fiscal policy
To provide loans to individuals
To regulate the stock market
#9
What is the name of the rate at which the central bank lends money to commercial banks?
Discount rate
Prime rate
Federal funds rate
LIBOR
#10
What is the role of the reserve requirement in banking?
To limit the amount of money banks can lend
To regulate the interest rates
To ensure banks have enough cash reserves
To determine the amount of government bonds banks can hold
#11
What is the term used to describe a situation where the overall price level increases rapidly?
Deflation
Stagflation
Hyperinflation
Disinflation
#12
What is the primary tool used by central banks to control the money supply?
Open market operations
Fiscal policy
Discount rate
Government bonds
#13
What is the name of the policy where a government increases spending or decreases taxes to stimulate economic growth?
Monetary policy
Fiscal policy
Trade policy
Exchange rate policy
#14
What does the acronym 'CPI' stand for in economics?
Consumer Price Index
Central Policy Indicator
Currency Price Indicator
Centralized Purchasing Index
#15
What is the quantity theory of money?
An economic theory that states the money supply directly determines the price level
A theory that explains how money is created
A theory that focuses on government spending
A theory that explains the relationship between inflation and unemployment
#16
What is the term for the rate of unemployment that still exists even when the economy is at full employment?
Structural unemployment
Cyclical unemployment
Frictional unemployment
Natural unemployment
#17
What is the name of the policy tool used by central banks to influence short-term interest rates?
Open market operations
Quantitative easing
Reserve requirements
Forward guidance
#18
What is the name of the policy used by central banks to buy or sell government securities?
Quantitative easing
Forward guidance
Open market operations
Discount window lending