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monetary Economics - 2025

Authored by Babila Kingsly

Arts

1st Grade

Used 2+ times

monetary Economics - 2025
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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a component of the money supply?

  1. a) Currency in circulation

Demand Deposit

  1. c) Government bond

Saving Deposit

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. Which of the following factors influences the supply of money?



  1. a) Central bank policies

  1. b) Public demand for cash

  1. c) Reserve requirements of banks

  1. d) All of the above

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. The money multiplier effect is mainly determined by which of the following?

  1. a) Interest rates

  1. b) Reserve ratio

  1. c) Inflation rate

  1. d) GDP growth

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. What happens to the money supply when the central bank increases the reserve requirement?

a) It increases

b) It decreases

c) It remains unchanged

d) It fluctuates randomly

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. Which institution primarily regulates the supply of money in an economy?



  1. a) Commercial banks

  1. b) Ministry of Finance

  1. c) Central bank

  1. d) Stock exchange

6.

FILL IN THE BLANK QUESTION

1 min • 1 pt

The money market deals with long-term financial instruments, while the capital market deals with short-term financial instruments. State true or false

7.

FILL IN THE BLANK QUESTION

1 min • 1 pt

The capital market plays a crucial role in economic development by providing funds for investment in infrastructure and industry.

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