What is the term for the policy that involves controlling the money supply and interest rates to influence the economy?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Welfare Policy
Answer: b) Monetary Policy
Which policy aims to achieve stable prices, low inflation, and sustainable economic growth?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Price Stability Policy
Answer: d) Price Stability Policy
What is the primary tool used by central banks to influence the money supply and interest rates?
a) Exchange Rates
b) Fiscal Policy
c) Tax Rates
d) Open Market Operations
Answer: d) Open Market Operations
Which policy aims to increase money supply and stimulate economic activity during a recession?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Austerity Policy
Answer: b) Expansionary Policy
What is the term for the interest rate at which banks borrow funds from the central bank?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: b) Discount Rate
Which policy involves reducing the money supply and increasing interest rates to control inflation?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: c) Contractionary Policy
What is the term for the rate at which commercial banks lend money to each other overnight?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: c) Federal Funds Rate
Which policy aims to reduce money supply to control inflation and prevent an overheated economy?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Austerity Policy
Answer: c) Contractionary Policy
What is the term for the central bank’s ability to create money and influence the money supply?
a) Reserve Ratio
b) Open Market Operations
c) Quantitative Easing
d) Monetary Authority
Answer: b) Open Market Operations
Which policy involves changing the reserve requirements for commercial banks to influence the money supply?
a) Reserve Ratio Policy
b) Discount Rate Policy
c) Fiscal Policy
d) Exchange Rate Policy
Answer: a) Reserve Ratio Policy
What is the term for the central bank’s target level of inflation or price stability?
a) Inflation Target
b) Expansion Target
c) Interest Rate Target
d) GDP Target
Answer: a) Inflation Target
Which policy involves buying or selling government securities to influence the money supply and interest rates?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Supply-Side Policy
Answer: b) Monetary Policy
What is the term for the rate at which the central bank lends money to commercial banks?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: b) Discount Rate
Which policy aims to stabilize the economy by influencing consumer spending and business investment?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Supply-Side Policy
Answer: a) Fiscal Policy
What is the term for the target interest rate set by the central bank for overnight interbank lending?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: c) Federal Funds Rate
Which policy aims to reduce money supply and control inflation by increasing interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: c) Contractionary Policy
What is the term for the measure of the money supply that includes currency in circulation and demand deposits?
a) M1
b) M2
c) M3
d) M4
Answer: a) M1
Which policy involves the central bank buying long-term government securities to increase money supply?
a) Open Market Purchase
b) Open Market Sale
c) Quantitative Easing
d) Reserve Ratio Policy
Answer: c) Quantitative Easing
What is the term for the rate at which commercial banks lend money to their most creditworthy customers?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: a) Prime Rate
Which policy involves the central bank selling government securities to reduce money supply?
a) Open Market Purchase
b) Open Market Sale
c) Quantitative Easing
d) Reserve Ratio Policy
Answer: b) Open Market Sale
What is the term for the interest rate at which the central bank lends money to commercial banks overnight?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: c) Federal Funds Rate
Which policy aims to control inflation by reducing consumer spending and slowing economic growth?
a) Expansionary Policy
b) Demand-Side Policy
c) Supply-Side Policy
d) Contractionary Policy
Answer: d) Contractionary Policy
What is the term for the total amount of money circulating in the economy, including cash and deposits?
a) Money Supply
b) Money Demand
c) Monetary Base
d) Monetary Velocity
Answer: a) Money Supply
Which policy involves controlling the money supply to influence interest rates and stabilize the economy?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Industrial Policy
Answer: b) Monetary Policy
What is the term for the ratio of the money supply that banks must hold in reserve?
a) Prime Rate
b) Reserve Ratio
c) Federal Funds Rate
d) Base Rate
Answer: b) Reserve Ratio
Which policy involves changing tax rates and government spending to influence the economy?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Supply-Side Policy
Answer: a) Fiscal Policy
What is the term for the rate at which commercial banks can borrow short-term funds from the central bank?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: b) Discount Rate
Which policy aims to stimulate economic activity by increasing money supply and lowering interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: b) Expansionary Policy
What is the term for the central bank’s ability to influence the money supply and credit conditions in the economy?
a) Monetary Policy
b) Money Supply
c) Money Demand
d) Monetary Authority
Answer: a) Monetary Policy
Which policy aims to influence economic growth and stability through government spending and taxation?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Industrial Policy
Answer: a) Fiscal Policy
What is the term for the central bank’s target interest rate for lending to other banks?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: c) Federal Funds Rate
Which policy aims to promote economic growth by influencing factors that affect productivity?
a) Expansionary Policy
b) Demand-Side Policy
c) Supply-Side Policy
d) Contractionary Policy
Answer: c) Supply-Side Policy
What is the term for the measure of the money supply that includes currency, demand deposits, and savings deposits?
a) M1
b) M2
c) M3
d) M4
Answer: b) M2
Which policy involves influencing economic activity by changing interest rates and money supply?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Supply-Side Policy
Answer: b) Monetary Policy
What is the term for the rate at which the central bank lends money to commercial banks during a financial crisis?
a) Prime Rate
b) Discount Rate
c) Emergency Rate
d) Base Rate
Answer: c) Emergency Rate
Which policy aims to control inflation by reducing money supply and increasing interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: c) Contractionary Policy
What is the term for the central bank’s authority to issue and regulate the nation’s currency?
a) Money Creation
b) Money Supply
c) Monetary Base
d) Monetary Authority
Answer: d) Monetary Authority
Which policy aims to influence consumer spending and business investment through government actions?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Industrial Policy
Answer: a) Fiscal Policy
What is the term for the central bank’s target interest rate for lending to commercial banks?
a) Prime Rate
b) Discount Rate
c) Federal Funds Rate
d) Base Rate
Answer: c) Federal Funds Rate
Which policy involves influencing the economy by changing government spending and taxation?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Supply-Side Policy
Answer: a) Fiscal Policy
What is the term for the measure of the money supply that includes currency, demand deposits, savings deposits, and time deposits?
a) M1
b) M2
c) M3
d) M4
Answer: c) M3
Which policy aims to stabilize the economy by influencing the money supply and interest rates?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Demand-Side Policy
Answer: b) Monetary Policy
What is the term for the central bank’s ability to set interest rates and control money supply to achieve economic goals?
a) Monetary Authority
b) Money Supply
c) Money Demand
d) Monetary Base
Answer: a) Monetary Authority
Which policy aims to reduce money supply and control inflation by increasing interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: c) Contractionary Policy
What is the term for the central bank’s ability to regulate and supervise financial institutions in the country?
a) Money Creation
b) Monetary Oversight
c) Monetary Supervision
d) Banking Regulation
Answer: d) Banking Regulation
Which policy aims to stimulate economic growth by increasing money supply and lowering interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: b) Expansionary Policy
What is the term for the central bank’s ability to create money by purchasing government securities?
a) Reserve Ratio
b) Open Market Operations
c) Quantitative Easing
d) Monetary Authority
Answer: b) Open Market Operations
Which policy aims to control inflation by reducing money supply and increasing interest rates?
a) Inflationary Policy
b) Expansionary Policy
c) Contractionary Policy
d) Demand-Side Policy
Answer: c) Contractionary Policy
What is the term for the central bank’s ability to influence the money supply through its control over the banking system?
a) Monetary Authority
b) Money Supply
c) Money Demand
d) Monetary Base
Answer: b) Money Supply
Which policy aims to stabilize the economy by influencing consumer spending and business investment through government actions?
a) Fiscal Policy
b) Monetary Policy
c) Trade Policy
d) Demand-Side Policy
Answer: a) Fiscal Policy
