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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the role of the central bank?
💡 Hint: Think about the institution that regulates the economy.
Question 2
Easy
What does a lower reserve ratio mean for banks?
💡 Hint: Consider the link between reserves and lending capacity.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is one tool central banks use to control money supply?
- Reserve Ratio
- Stock Market
- Interest Rate Swaps
💡 Hint: Look for terms related to banking and regulation.
Question 2
True or False: Higher public demand for cash typically increases the money supply.
- True
- False
💡 Hint: Think about what happens to cash versus deposits.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Evaluate a scenario where the central bank raises the reserve ratio. Discuss the potential short-term and long-term effects on the money supply and economic activity.
💡 Hint: Think about the balance between inflation control and economic growth.
Question 2
Analyze case studies where public demand for cash surged. How did banks and the central bank respond to maintain economic stability?
💡 Hint: Consider both immediate and strategic responses in your analysis.
Challenge and get performance evaluation