1
The primary goal of a central bank is to _________ .
A.
B.
C.
D.
Answer & Solution
Central 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
Central 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
QE 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
Raising 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
Blockchain 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
Robo-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
P2P 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
The 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
ESG 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
Environmental factors include a company’s impact on the natural environment, such as carbon emissions and resource use.
