Increase lending and broad money growth

Free CFA Economics Practice Questions & Answers

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Question 1771

The discount rate in the United States refers to:

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Question 1772

The federal funds rate is best described as:

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Question 1773

The FOMC influences the federal funds rate primarily through:

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Question 1774

Higher policy rates generally lead banks to:

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Question 1775

A key limitation of monetary policy is that:

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Question 1776

A breakdown in the transmission mechanism occurs when:

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Question 1777

Long-term interest rates depend mainly on:

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Question 1778

If markets believe rates are already too high, a rate hike may:

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Question 1779

Falling long-term rates after a rate hike may:

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Question 1780

Bond market “vigilantes” are investors who:

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Question 1781

Vigilantes may push long-term rates down when:

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Question 1782

A credible monetary authority reduces the need for:

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Question 1783

A liquidity trap occurs when:

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Question 1784

In a liquidity trap, monetary policy becomes:

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Question 1785

Liquidity traps are associated with:

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Question 1786

Deflation is defined as:

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Question 1787

Deflation is difficult for monetary policy because:

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Question 1788

Deflation increases the real value of:

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Question 1789

Deflation may cause consumers to:

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Question 1790

A deflationary trap is characterized by:

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Question 1791

When rates hit zero, conventional monetary policy becomes:

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Question 1792

Quantitative easing (QE) is best described as:

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Question 1793

QE is operationally similar to:

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Question 1794

QE aims to:

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Question 1795

A risk of QE is that banks may:

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Question 1796

QE in the UK focused on purchasing:

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Question 1797

QE in the United States initially focused on:

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Question 1798

QE1 was followed by QE2 because:

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Question 1799

QE2 involved purchasing:

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Question 1800

QE3 focused on purchasing:

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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