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Monetary Policy

Quiz by Dyas Rakhmasary

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7 questions
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  • Q1

    It refers to the amount of money in the economy at a particular point in time, e.g. coins, banknotes, bank deposits and central bank reserves

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    120s
  • Q2

    It refers to the use of interest rates, exchange rates and the money supply to control macroeconomic objectives and to affect the level of economic activity

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    120s
  • Q3

    The three main monetary policy measures

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    120s
  • Q4

    The amount lenders charge borrowers and is a percentage of the principal

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    120s
  • Q5

    The rate at which a currency can be converted into another currency

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    120s
  • Q6

    It is also known as loose monetary policy. A decrease in interest rates to boost economic activity

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    120s
  • Q7

    It is also known as tight monetary policy. An increase in interest rates tends to reduce overspending and limit investment in the economy.

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    120s

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