Mmt-80i student Alisherov Nuriddin The interest rate policy of commercial banks

MMT-80i student Alisherov Nuriddin
The interest rate policy of commercial banks
1. Which of the following determines the interest rate policy of commercial banks?
A. The government
B. The central bank
C. The stock market
D. The customers
2. Which of the following is a factor that affects the interest rate policy of commercial banks?
A. Inflation
B. Political climate
C. Technological advancements
D. Changing consumer behavior
3. When inflation is high, what is the effect on the interest rate policy of commercial banks?
A. Banks increase interest rates to attract more customers
B. Banks decrease interest rates to encourage borrowing
C. Banks maintain the same interest rates to minimize risk
D. None of the above
4. Which of the following is NOT a tool used by the central bank to influence the interest rate policy of commercial banks?
A. Open market operations
B. Reserve requirements
C. Financial aid to customers
D. Discount rates
5. What is the prime rate?
A. The interest rate offered to a bank's most valuable customers
B. The interest rate offered to borrowers with bad credit
C. The interest rate charged on a bank's savings accounts
D. The interest rate charged on a bank's loans
6. What is a variable interest rate?
A. An interest rate that changes depending on market conditions
B. An interest rate that remains the same throughout the loan period
C. An interest rate that is set by the government
D. An interest rate that is determined by the borrower's credit score
7. Which of the following is an advantage of a fixed interest rate?
A. The interest rate can decrease over time
B. The borrower can pay off the loan faster
C. The borrower has a predictable payment schedule
D. The borrower can negotiate the interest rate
8. What is an adjustable rate mortgage?
A. A mortgage with a fixed interest rate
B. A mortgage with a variable interest rate
C. A mortgage with no interest rate
D. A mortgage with a high interest rate
9. Which of the following loans typically has the highest interest rate?
A. Auto loans
B. Home loans
C. Personal loans
D. Credit card loans
10. Which of the following is NOT a factor that affects a borrower's credit score?
A. Payment history
B. Length of credit history
C. Annual income
D. Types of credit used