Podcast
Questions and Answers
What is the primary objective of monetary policy?
What is the primary objective of monetary policy?
- Controlling inflation and stabilizing the currency (correct)
- Regulating the stock market and bond yields
- Maximizing employment and economic growth
- Balancing trade deficits and surpluses
Which entity is typically responsible for formulating and implementing monetary policy?
Which entity is typically responsible for formulating and implementing monetary policy?
- Ministry of Finance
- World Bank
- International Monetary Fund
- Central bank (correct)
How does expansionary monetary policy affect interest rates?
How does expansionary monetary policy affect interest rates?
- It raises interest rates to control inflation
- It lowers interest rates to stimulate borrowing and spending (correct)
- It has no impact on interest rates
- It only affects short-term interest rates, not long-term rates
What is the primary tool used in expansionary monetary policy?
What is the primary tool used in expansionary monetary policy?
Which of the following is an example of contractionary monetary policy?
Which of the following is an example of contractionary monetary policy?
How does a central bank use the discount rate as a monetary policy tool?
How does a central bank use the discount rate as a monetary policy tool?
Flashcards
Monetary policy objective?
Monetary policy objective?
To control inflation and stabilize the currency.
Who controls monetary policy?
Who controls monetary policy?
The central bank.
Expansionary policy and rates?
Expansionary policy and rates?
It lowers interest rates to stimulate borrowing and spending.
Primary tool for expansion?
Primary tool for expansion?
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Example of contractionary policy?
Example of contractionary policy?
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How is discount rate used?
How is discount rate used?
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