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

Understanding Interest Rates and Economic Scenarios

Interactive Video
•
Business, Economics, Social Studies
•
10th - 12th Grade
•
Hard

Emma Peterson
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
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
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