Quiz On Monetary Policy And Economic Theory

10 Questions | Total Attempts: 244

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Quiz On Monetary Policy And Economic Theory - Quiz

Questions and Answers
  • 1. 
    What is monetary policy?
    • A. 

      Credit, cash, checks, and money market mutual funds.

    • B. 

      Marxism

    • C. 

      Taxes and government spending.

    • D. 

      How a central bank (or government body)manages the money supply to guide the economy and any economic growth

  • 2. 
    What tools are used to conduct monetary policy by a central bank?
    • A. 

      Using the tax revenue collected, the government spends its money on government programs to help stimulate the economy.

    • B. 

      Open market operations, discount rate, and reserve requirements.

    • C. 

      Laying out infrastructure

    • D. 

      Member banks, QE4, M2, and printing money

  • 3. 
    What directly affects the money supply and interest rate of an economy?
    • A. 

      Lizard men that are in disguise as Jewish Bankers

    • B. 

      The Bilderberg Group aka the Illuminati

    • C. 

      Barack Obama the Antchrist

    • D. 

      Government securities such as bonds.

  • 4. 
    What is the purpose of government securities being sold in a marketplace?
    • A. 

      To give the president more credit so he or she can spend more.

    • B. 

      To make the government accumulate more wealth.

    • C. 

      To make the government more powerful.

    • D. 

      To make the availability of credit increase in the market and to reduce interest rates, which will encourage businesses to invest more and consumers to spend more.

  • 5. 
    If a central bank increases the discount rate, the lending of banks will _______
    • A. 

      Increase

    • B. 

      Decrease

    • C. 

      Stay the same

    • D. 

      The banks are not affected by the discount rate.

  • 6. 
    The reserve requirements stated by a central bank are held either as non-interest bearing reserves or as cash. 
    • A. 

      True

    • B. 

      False

  • 7. 
    By increasing the reserve ratio-requirement the banks will have better business because the banks will be able to lend more money hence more business can be conducted.
    • A. 

      True

    • B. 

      False

  • 8. 
    Before the US and the majority of western countries converted to fiat money after the Great Depression what money standard did the typical western country use such as the United States of America?
    • A. 

      The silver standard

    • B. 

      The gold standard

    • C. 

      Bartering

    • D. 

      Western countries have always used the fiat system.

  • 9. 
    What school of economic thought would Adam Smith author of the wealth of nations be derived from?
    • A. 

      The Keynesian School

    • B. 

      The Neoclassical School

    • C. 

      The British Classical School

    • D. 

      The Austrian School

    • E. 

      The Monetarist School

    • F. 

      Marxism

  • 10. 
    Who was the founder(s) of Marxism?
    • A. 

      Mao Zedong

    • B. 

      Karl Marx and Friedrich Engels

    • C. 

      Kim Jong Un of Best KOREA!

    • D. 

      Ron Paul

    • E. 

      Friedrich Hayek

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