Front

What can a Central Bank do to stimulate the economy during a crisis?

Back

Lower interest rates to encourage borrowing and spending.

Front

What is an economic bubble?

Back

A phase where the value of a certain asset increases in an irrational and unsustainable way.

Front

What is 'public debt'?

Back

The total amount of money that a country's government has borrowed from domestic and foreign sources.

Front

What sector did the 2008 global economic crisis begin with?

Back

The real estate and mortgage lending market.

Front

Why do people often rush to buy gold during an economic crisis?

Back

Because gold is considered a safe asset that helps preserve value when currency loses value.

Front

What is the primary role of a Central Bank?

Back

To manage a country's currency, money supply, and interest rates.

Front

Define inflation.

Back

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Front

What is a recession?

Back

A period of temporary economic decline during which trade and industrial activity are reduced.

Front

What does fiscal policy refer to?

Back

Government spending policies that influence macroeconomic conditions.

Front

What is monetary policy?

Back

The process by which a central bank manages the money supply to achieve specific goals.