Froggy Jumps Inflation QuizVersion en ligne Test your knowledge about inflation and monetary policy with this quiz! par Andrew Hebden 1 What is inflation? a A decrease in prices and rise in the purchasing value of money. b A general increase in prices and fall in the purchasing value of money. c A stable price level with no change in the purchasing value of money. 2 What is the main cause of inflation? a A decrease in the money supply. b Changes in consumer demand. c An increase in the money supply. 3 What is the target inflation rate in the UK? a 2% b 3% c 1% 4 How does inflation affect savers? a It has no impact on the purchasing power of their savings. b It erodes the purchasing power of their savings. c It increases the purchasing power of their savings. 5 What is the role of the Bank of England in managing inflation? a To regulate the stock market. b To set interest rates and implement monetary policy. c To control government spending. 6 What is deflation? a A general decrease in prices and rise in the purchasing value of money. b A decrease in prices and fall in the purchasing value of money. c A stable price level with no change in the purchasing value of money. 7 What is the impact of inflation on borrowers? a It increases the real value of their debt. b It has no impact on the real value of their debt. c It reduces the real value of their debt. 8 What is the CPI? a Consumer Price Index. b Central Price Index. c Currency Price Index. 9 What is the purpose of monetary policy? a To control inflation and stabilize the economy. b To promote economic growth. c To regulate international trade. 10 What is the relationship between inflation and interest rates? a As inflation rises, interest rates tend to increase. b As inflation rises, interest rates tend to decrease. c Inflation has no impact on interest rates.
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