practice quiz 3 by medgalaxy

What is the primary function of central banks?

• To manage inflation

• To regulate taxes

• To provide loans to individuals

• To manage national budgets

Which currency is known as the world's reserve currency?

• Euro

• US Dollar

• British Pound

• Japanese Yen

What does GDP stand for in economic terms?

• General Domestic Product

• Gross Domestic Product

• Global Development Program

• Gross Debt Product

Which of the following is an example of a 'stock market index'?

• Dollar

• S&P 500

• Inflation Rate

• Consumer Price Index

Which organization is responsible for the regulation of international monetary policy and exchange rates?

• United Nations

• World Bank

• International Monetary Fund (IMF)

• World Trade Organization (WTO)

What is 'inflation'?

• Increase in interest rates

• Increase in the general price level of goods and services

• Decrease in GDP

• Decrease in consumer spending

Which type of market involves buying and selling of financial securities such as stocks and bonds?

• Commodity Market

• Real Estate Market

• Financial Market

• Labor Market

What is a 'bull market'?

• A market where prices are falling

• A market with low trading volume

• A market where prices are rising

• A market dominated by bear investors

Which of the following is a commonly used measure of a country's economic performance?

• Consumer Price Index

• Interest Rate

• Gross Domestic Product (GDP)

• Stock Exchange Index

What is the meaning of 'interest rate'?

• The fee charged for borrowing money

• The price of goods and services in the economy

• The amount of money in circulation

• The rate at which banks lend money to governments