Economics Quiz on Currency Concepts

Inflation decreases the value of currency, making goods and services more expensive.

Institutions that manage a country's economy, enabling an increased flow of currency by minting new money.

Short-term financial crises characterized by a sudden loss of confidence, leading to rapid selling or withdrawal of funds.

Prolonged periods of economic decline, generally lasting longer than panics and indicating significant economic issues.

The value of currency based on how many goods/services it can buy.

A decrease in the general price level of goods and services, usually considered detrimental to the economy.

Inflation leads to increasing prices while deflation leads to decreasing prices and is generally seen as harmful.

The worth of a currency based on its purchasing power and stability in the market.

The strategies and policies central banks implement to regulate money supply and stabilize the economy.

The process of creating new currency, typically carried out by central banks.

A period of quick economic downturn due to sudden loss of trust or panic among investors.

A gradual downturn in economic performance, typically lasting longer and affecting more sectors than a panic.

A numerical expression of an individual's creditworthiness, affecting borrowing capabilities.

As inflation rises, the price of goods and services also tends to increase.

Statistics providing information about the economic performance and are used to predict future movements.

The degree of trust that consumers and investors have in the economic stability, affecting spending and investment.

Often assessed through purchasing power and economic activity, indicating financial health.

Strategies implemented by governments and central banks to control economic conditions such as inflation and unemployment.

When too much currency is in circulation, leading to increased prices and reduced purchasing power.

Measures taken to remedy economic problems such as recessions, inflation, and deflation.