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Free CFA Economics Practice Questions & Answers

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Question 1681

Selling government bonds in open market operations will:

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Question 1682

When bank reserves fall, lending typically:

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Question 1683

The central bank’s policy rate is usually the rate at which it:

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Question 1684

A repurchase agreement (repo) is best described as:

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Question 1685

When a central bank raises its policy rate, commercial banks typically:

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Question 1686

Commercial banks adjust their base rates because:

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Question 1687

The Bank of England’s policy rate is known as:

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Question 1688

The European Central Bank’s policy rate is known as:

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Question 1689

A central bank acting as banker to the government means it:

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Question 1690

A central bank acting as banker to banks means it:

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Question 1691

The payments system role of a central bank includes:

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Question 1692

Central banks coordinate payments systems internationally because:

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Question 1693

The overarching objective of most central banks is:

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Question 1694

Price stability is important because it:

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Question 1695

Open market operations influence money supply by:

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Question 1696

When a central bank buys bonds, interest rates generally:

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Question 1697

When a central bank sells bonds, interest rates generally:

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Question 1698

The money multiplier process refers to:

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Question 1699

A central bank’s ability to print money makes it uniquely able to:

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Question 1700

A bank run occurs when:

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Question 1701

Deposit insurance helps prevent bank runs by:

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Question 1702

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

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Question 1703

A central bank’s foreign reserve management helps it:

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Question 1704

The policy rate influences long-term interest rates because:

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Question 1705

A repo transaction is effectively:

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Question 1706

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

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Question 1707

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

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Question 1708

The central bank’s monopoly over currency issuance means:

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Question 1709

A key objective of monetary policy is to:

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Question 1710

Price stability helps the economy by:

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Free CFA Economics Practice Questions & Answers

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Before you go, can we ask you one thing?

Thank you