Coursera | Understanding Financial Markets

Graded quiz on the content of Module 4

Graded quiz on the content of Module 4 >> Understanding Financial Markets

1 point

Maintaining healthy public finances

Providing financial aid to developing countries

Guaranteeing gender equality in terms of wages

Maintaining price or currency stability

1 point

Inflation is typically passed from producers to consumers because the higher cost of production inputs cause the price of final products to increase.

A central bank can promote growth and reduce inflation at the same time by manipulating interest rates alone.

Central banks can “kill two birds with one stone”.

A rise in interest rates typically causes the economy to slow down.

Which of the following steps of the traditional boom / bust cycle have been replaced by the numbers 1, 2 and 3 in this picture?

1 point

Increased demand for employment and raw materials
Interest rates rise
Staff wages and raw materials prices rise

Staff wages and raw materials prices rise
Increased demand for employment and raw materials
Interest rates rise

Interest rates rise
Increased demand for employment and raw materials
Staff wages and raw materials prices rise

Interest rates rise
Staff wages and raw materials prices rise
Increased demand for employment and raw materials

Staff wages and raw materials prices rise
Interest rates rise
Increased demand for employment and raw materials

Increased demand for employment and raw materials
Staff wages and raw materials prices rise
Interest rates rise

1 point

The yield of bonds with a shorter maturity are lower than that of bonds with a longer maturity.

It is indicative of a restrictive monetary policy being conducted by the central bank.

The yield of bonds of all maturity are the same.

The yield of bonds with a shorter maturity are higher than that of bonds with a longer maturity.

It is indicative of an easy monetary policy being conducted by the central bank.

1 point

You should not increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them does not increase with inflation.

High inflation is generally bad for equities and bonds.

High inflation is generally good for equities and bonds.

You should increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them increases with inflation.

1 point

Short term rates decrease less than long term rates.

Short term rates increase more than long term rates.

Short term rates decrease more than long term rates.

Short term rates increase less than long term rates.

1 point

The yield curve is still upward sloping.

The yield curve has steepened.

The yield curve is now downward sloping.

The yield curve has flattened.

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Coursera | Financial Markets

Graded quiz on the content of Module 4 >> Understanding Financial Markets

Graded quiz on the content of Module 4

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