Free Questions › CFA › Economics

Free CFA Economics Practice Questions & Answers

2,050 exam-style Economics questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

100% free · No login to start

Question 781

The central bank’s role in supervising the banking system includes:

Select an option first.

Question 782

A central bank’s foreign reserve management helps it:

Select an option first.

Question 783

The policy rate influences long-term interest rates because:

Select an option first.

Question 784

A repo transaction is effectively:

Select an option first.

Question 785

Commercial banks raise lending rates when the policy rate rises because:

Select an option first.

Get the full CFA question bank — free

Drop your email and we'll send you fresh CFA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.

Want to save your score and take a full mock exam? Create a free account →

Question 786

The central bank can force banks to borrow at the policy rate by:

Select an option first.

Question 787

The central bank’s monopoly over currency issuance means:

Select an option first.

Question 788

A key objective of monetary policy is to:

Select an option first.

Question 789

Price stability helps the economy by:

Select an option first.

Question 790

Open market purchases by the central bank generally:

Select an option first.

Question 791

Open market sales by the central bank generally:

Select an option first.

Question 792

The money multiplier effect depends on:

Select an option first.

Question 793

A central bank’s credibility is crucial because:

Select an option first.

Question 794

A central bank that loses credibility risks:

Select an option first.

Question 795

The central bank’s role as supervisor of the banking system aims to:

Select an option first.

Question 796

The discount rate in the United States is:

Select an option first.

Question 797

The most important interest rate in US monetary policy is the:

Select an option first.

Question 798

The federal funds rate is the rate on:

Select an option first.

Question 799

The FOMC influences the federal funds rate by:

Select an option first.

Question 800

When the central bank raises the policy rate, banks are more likely to:

Select an option first.

Question 801

Higher policy rates generally cause broad money growth to:

Select an option first.

Question 802

Reserve requirements influence money supply because:

Select an option first.

Question 803

Reserve requirements are rarely used in developed economies because:

Select an option first.

Question 804

The Bank of England no longer uses:

Select an option first.

Question 805

Reserve requirements remain widely used in:

Select an option first.

Question 806

Central banks manipulate money supply using:

Select an option first.

Question 807

The overarching goal of monetary policy is usually:

Select an option first.

Question 808

The monetary transmission mechanism describes:

Select an option first.

Question 809

A rise in the policy rate tends to:

Select an option first.

Question 810

A stronger currency resulting from higher interest rates tends to:

Select an option first.

Before you go, can we ask you one thing?

Thank you

Free CFA Economics Practice Questions & Answers

Privacy Preference

Before you go, can we ask you one thing?

Thank you