TH » Test: Influence of Policy on Currency

Test: Influence of Policy on Currency

Question 01: What is an expansionary monetary policy?

a) Stimulating the production of money

b) The central bank seeking opportunities to manufacture money

c) The central bank seeking ways to reduce the money supply

d) The central bank seeking ways to increase the money supply

Question 02: How does restrictive policy affect the currency?

a) Positively

b) Negatively

c) Insignificantly

d) Does not affect

Question 03: How does expansionary policy affect the currency?

a) Positively

b) Negatively

c) Insignificantly

d) Does not affect

Question 04: What is a reserve requirement?

a) The minimum amount of funds available for immediate withdrawal

b) The maximum amount of funds available for immediate withdrawal

c) A clearly defined limit that needs to be set aside

d) The amount that must always be in the user's reserve

Question 05: What is fiscal policy?

a) Government revenue

b) Additional government funds

c) Government expenditures

d) Options A and C

Question 06: When does a budget deficit occur?

a) When the country lends more to private investors than it spends

b) When the country spends more than it receives in loans from private investors

c) When the country's budget is short of funds

d) When the country makes poor forecasts for next year's budget

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