Understanding Interest Rates and Economic Scenarios

Understanding Interest Rates and Economic Scenarios

Assessment

Interactive Video

Business, Economics, Social Studies

10th - 12th Grade

Hard

Created by

Emma Peterson

FREE Resource

The video explains interest rates as the price of renting money, using supply and demand curves to illustrate how various economic scenarios affect interest rates. It covers the roles of the central bank, consumer savings, and government borrowing in shifting supply and demand, ultimately impacting interest rates.

Read more

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary role of interest rates in the economy?

To act as the price of renting money

To determine the value of currency

To control government spending

To regulate inflation

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the marginal benefit of borrowing money change as more money is borrowed?

It fluctuates randomly

It decreases

It increases

It remains constant

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to the opportunity cost of lending money as more money is lent?

It increases

It decreases

It becomes negative

It remains the same

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the effect of the central bank printing and lending more money?

Interest rates become unpredictable

Interest rates remain unchanged

Interest rates decrease

Interest rates increase

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does a decrease in consumer savings affect the supply of money?

The supply of money increases

The supply of money becomes volatile

The supply of money decreases

The supply of money remains unchanged

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the likely impact on interest rates if the government borrows more money without changing the supply?

Interest rates will fluctuate

Interest rates will increase

Interest rates will decrease

Interest rates will remain the same

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to the price of money if the supply of money increases?

The price of money increases

The price of money decreases

The price of money remains constant

The price of money becomes unstable

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?