Introduction to Monetary Policy

Froggy Jumps

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Test your knowledge of monetary policy basics!

Regie C. Medidas

Philippines

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Introduction to Monetary Policy


Froggy Jumps Introduction to Monetary PolicyVersion en ligne Test your knowledge of monetary policy basics! par Regie C. Medidas 1 What is the main goal of monetary policy? a Reduce taxes b Control inflation and stabilize currency c Increase government spending 2 Which entity typically implements monetary policy? a Central Bank b Ministry of Finance c International Monetary Fund 3 What tool does a central bank use to influence the economy? a Interest rates b Tax policies c Trade tariffs 4 What does lowering interest rates usually encourage? a Saving and reducing spending b Decreasing investment c Borrowing and spending 5 What is an example of an expansionary monetary policy? a Raising taxes b Lower interest rates c Increasing interest rates 6 What does tightening monetary policy aim to do? a Reduce inflation b Boost employment c Increase money supply 7 Which of these is a common effect of high interest rates? a Increased investment b Reduced borrowing c Lower savings 8 What is the term for money supply increasing rapidly? a Inflation b Deflation c Stagflation 9 Which policy is used to fight recession? a Fiscal austerity b Expansionary monetary policy c Contractionary monetary policy 10 What does a central bank do during quantitative easing? a Increases interest rates b Sells government securities c Purchases government securities