Monetary policy

Question 1

What is the primary goal of monetary policy?

To control inflation To reduce unemployment To stabilize the currency All of the above

Question 2

Which of the following is NOT a tool of monetary policy?

Open market operations Discount rate Fiscal policy Reserve requirements

Question 3

What does the term "quantitative easing" refer to?

Increasing interest rates to curb inflation The central bank buying financial assets to inject liquidity into the economy Reducing government spending to decrease the deficit Selling government bonds to decrease money supplyD) Selling government bonds to decrease money supply

Question 4

What is the primary objective of central banking?

To maximize profits for shareholders To maintain financial stability and manage inflation and employment levels To regulate international trade agreements To provide loans to private businesses at low interest rates