Here are some MCQs on Money Markets & Monetary Policy
1. Which of the following is not a characteristic of money markets?
a. Short-term debt instruments
b. High liquidity
c. Long-term investment options
d. Low-risk investments
2. Which of the following is an example of a money market instrument?
a. Corporate bond
b. Treasury bill
c. Common stock
d. Mortgage-backed security
3. What is the primary objective of monetary policy?
a. Maximizing employment
b. Minimizing inflation
c. Stabilizing exchange rates
d. Promoting economic growth
4. Open market operations refer to the buying and selling of:
a. Currency in the foreign exchange market
b. Government securities in the money market
c. Commercial paper in the bond market
d. Stocks in the stock market
5. The Federal Reserve is the central bank of which country?
a. United Kingdom
b. Germany
c. United States
d. China
