16. Which of the following is an example of a monetary policy instrument?
a. Government budget deficit
b. Trade tariffs
c. Reserve requirement
d. Stock market index
17. Which of the following is a goal of monetary policy?
a. Maximizing employment
b. Minimizing government debt
c. Promoting international trade
d. Reducing income inequality
18. The term “liquidity trap” refers to a situation where:
a. Interest rates are very low, and monetary policy becomes ineffective
b. Interest rates are very high, and monetary policy becomes ineffective
c. The money supply is too high, leading to inflation
d. The money supply is too low, leading to recession
19. Which of the following is not a tool of monetary policy?
a. Reserve requirement
b. Discount rate
c. Fiscal stimulus
d. Open market operations
20. The term “Taylor rule” is associated with:
a. Monetary policy
b. Fiscal policy
c. International trade
d. Stock market regulation
