1
The primary goal of a central bank is to .
A.
B.
C.
D.
Answer & Solution
Answer:
Control inflation and stabilize the currencyCentral banks aim to maintain price stability and foster economic growth through monetary policy.
2
Which of the following is a tool used by central banks to implement monetary policy?
A.
B.
C.
D.
Answer & Solution
Answer:
Interest rate adjustmentsCentral banks adjust interest rates to influence borrowing, spending, and inflation in the economy.
3
What is quantitative easing (QE)?
A.
B.
C.
D.
Answer & Solution
Answer:
Central banks purchasing financial assets to inject liquidity into the economyQE is a non-traditional monetary policy used to stimulate the economy by increasing money supply and lowering interest rates.
4
When a central bank raises interest rates, it is typically to .
A.
B.
C.
D.
Answer & Solution
Answer:
Control inflationRaising interest rates is a tool to
combat inflation by reducing spending and borrowing.
5
Which of the following is a benefit of blockchain technology in finance?
A.
B.
C.
D.
Answer & Solution
Answer:
Increased transaction speedBlockchain technology can streamline and speed up transactions by eliminating intermediaries and providing real-time processing.
6
Robo-advisors are .
A.
B.
C.
D.
Answer & Solution
Answer:
Automated platforms for investment managementRobo-advisors use algorithms to
manage investment portfolios with minimal human intervention, typically at a
lower cost.
7
Peer-to-peer (P2P) lending platforms allow .
A.
B.
C.
D.
Answer & Solution
Answer:
Individuals to lend and borrow directly without intermediariesP2P lending connects borrowers and lenders directly through online platforms, bypassing traditional financial institutions.
8
Which of the following is a risk associated with fintech?
A.
B.
C.
D.
Answer & Solution
Answer:
Lack of regulationThe rapid growth of fintech raises concerns about insufficient regulatory oversight, potentially leading to risks for consumers and investors.
9
ESG investing focuses on .
A.
B.
C.
D.
Answer & Solution
Answer:
Ethical and sustainable business practicesESG investing evaluates companies based on their environmental, social, and governance performance in addition to financial metrics.
10
Which of the following is an example of an environmental factor in ESG investing?
A.
B.
C.
D.
Answer & Solution
Answer:
Carbon emissionsEnvironmental factors include a company’s impact on the natural environment, such as carbon emissions and resource use.
