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Education › Economics › Monetary Economics › Monetary Transmission

Monetary Transmission Quiz

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| By Thames

T

Thames

Community Contributor

Quizzes Created: 7229 | Total Attempts: 9,524,689

| Questions: 8 | Updated: Nov 12, 2025

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1. What is the primary tool used by central banks to influence monetary policy?

Open market operations

Fiscal policy

Regulation of banks

Exchange rate adjustments

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About This Quiz

Monetary Transmission Quiz - Quiz

2. What's your name?

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2. Which of the following is NOT a channel of monetary transmission?

Interest rate channel

Credit channel

Exchange rate channel

Taxation channel

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3. How does a decrease in interest rates typically affect consumer spending?

It decreases consumer spending

It has no effect on consumer spending

It increases consumer spending

It only affects business investment

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4. What is the effect of quantitative easing on the economy?

It decreases the money supply

It increases the money supply

It has no effect on the money supply

It only affects inflation

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5. Which of the following best describes the 'liquidity trap'?

A situation where interest rates are high

A situation where monetary policy becomes ineffective

A situation where inflation is high

A situation where banks are unwilling to lend

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6. What role do expectations play in monetary transmission?

They have no role

They can influence consumer and business behavior

They only affect stock prices

They are only relevant in fiscal policy

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7. Which of the following is a potential consequence of low interest rates?

Increased savings

Asset bubbles

Decreased borrowing

Lower inflation

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8. What is the primary goal of monetary policy?

To maximize government revenue

To control inflation and stabilize the economy

To reduce unemployment at all costs

To increase exports

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All (8)
Unanswered ()
Answered ()

What is the primary tool used by central banks to influence monetary...

Which of the following is NOT a channel of monetary transmission?

How does a decrease in interest rates typically affect consumer...

What is the effect of quantitative easing on the economy?

Which of the following best describes the 'liquidity trap'?

What role do expectations play in monetary transmission?

Which of the following is a potential consequence of low interest...

What is the primary goal of monetary policy?

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