Economics - Monetary Policy MCQ Test 4

1. What is the relationship between interest rates and bond prices in monetary policy?

2. In the context of monetary policy, what does the term 'Quantitative Easing' refer to?

3. How does 'Deflation' impact an economy?

4. What is the primary purpose of 'Forward Guidance' in monetary policy?

5. What is 'Tight Monetary Policy'?

6. What is the primary objective of 'Stabilization Policy'?

7. Which economist proposed the 'Quantity Theory of Money'?

8. What impact does 'Globalization' have on monetary policy effectiveness?

9. Which of the following is a goal of 'Central Bank Independence'?

10. How does 'Financial Market Liquidity' impact monetary policy effectiveness?

11. Which institution is responsible for conducting monetary policy in the United States?

12. What role does the Taylor Rule play in monetary policy?

13. Which of the following is an example of an expansionary monetary policy?

14. Which country was the first to introduce a modern fiat currency system?

15. What is the main goal of a central bank when using forward guidance?

16. Explain the concept of 'Moral Hazard' in the context of monetary policy.

17. What is the primary goal of 'Inflation Targeting'?

18. What is 'Sterilization' in the context of monetary policy?

19. How do 'Capital Controls' affect a country's monetary policy?

20. What does 'Seigniorage' refer to?