ECONOMICS (CBSE/UGC NET)

ECONOMICS

FEDERAL RESERVE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The index of leading economic indicators shows a strong move towards inflation.
A
Tight Money
B
Easy Money
C
Do Nothing
D
None of the above
Explanation: 

Detailed explanation-1: -Prominent leading indicators of inflation include the price of gold, broader indexes of commodity prices, and composite indicators that combine several economic series believed to predict the inflation rate.>

Detailed explanation-2: -Tight monetary policy aims to slow down an overheated economy by increasing interest rates. Conversely, loose monetary policy aims to stimulate an economy by lowering interest rates.

Detailed explanation-3: -Tight monetary policy is an action undertaken by a central bank such as the Federal Reserve to slow down overheated economic growth. Central banks engage in tight monetary policy when an economy is accelerating too quickly or inflation-overall prices-is rising too fast.

Detailed explanation-4: -GDP. Employment Figures. Industrial Production. Consumer Spending. Inflation. Home Sales. Home Building. Construction Spending. More items

There is 1 question to complete.