Interview Test 4 Test 4 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. The primary objective of fiscal policy is to: Control inflation Manage public debt Achieve economic stability and growth Regulate interest rates None 2. Which of the following is a tool of monetary policy used by the government to control the money supply? Taxation Open market operations Subsidies Tariffs None 3. A government policy aimed at reducing unemployment generally involves: Decreasing government spending Increasing interest rates Increasing public investment in job-creating sectors Reducing money supply None 4. Which of the following best describes the purpose of trade policy To encourage imports To protect domestic industries To decrease exports s To limit foreign exchange reserves None 5. A primary objective of expansionary fiscal policy is to: Increase government savings Curb inflation Curb inflation Reduce budget deficits None 6. The objective of price stability in economic policy refers to: Reducing interest rates Preventing significant inflation or deflation Ensuring a balanced trade account Promoting rapid economic growth None 7. One of the major goals of supply-side policies is to: Decrease aggregate demand Increase long-term productivity and efficiency Limit government spending Control inflation directly None 8. Which policy would a government most likely implement to stimulate demand in a recession? Increase income tax rates Increase interest rates Increase public spending on infrastructure Reduce unemployment benefits None 9. Which of the following is a common objective of both fiscal and monetary policy? Full employment Encouraging imports Reducing government debt Restricting money supply None 10. The main objective of a government’s regulatory policy is to: Maximize profits for businesses Provide subsidies to all businesses Protect consumers, workers, and the environment Increase taxes on corporations None 11. A primary goal of anti-inflationary policy is to: Increase aggregate demand Stabilize prices and maintain purchasing power Encourage more borrowing Promote exports over imports None 12. To stimulate economic growth, a government may pursue policies aimed at: Increasing interest rates Increasing investment and innovation Reducing exports Limiting the labor supply None 13. Austerity measures are typically implemented to achieve which of the following objectives Stimulate economic growth Control public debt and reduce deficits Increase inflation Promote higher wages None 14. Which of the following is a goal of environmental policy? Increase industrial output Reduce public sector investment Minimize pollution and conserve resources Limit renewable energy adoption None 15. An increase in government spending combined with tax cuts is generally aimed at: Reducing inflation Decreasing the money supply Stimulating economic demand Lowering exports None 16. The objective of income redistribution as part of government policy is to: Concentrate wealth in fewer hands Increase income inequality Reduce the gap between high-income and low-income groups Promote investment in luxury goods None 17. The government’s objective in promoting free trade agreements is Increase trade barriers Encourage export and import growth Create a budget surplus Reduce international cooperation None 18. Fiscal consolidation is primarily aimed at: Increasing inflation Reducing government deficits and debt accumulation Expanding money supply Stimulating demand through increased spending None 19. The primary objective of a central bank’s interest rate policy is to: Influence the cost of borrowing and control inflation Increase government revenue Boost the stock market Directly reduce unemployment None 20. The government promotes innovation policies primarily to Reduce inflation Increase national competitiveness and productivity Decrease exports Raise short-term interest rates None 21. The primary purpose of contractionary fiscal policy is to: Reduce inflation Increase employment Stimulate economic growth Increase public spending None 22. Which of the following is often a goal of monetary policy? Reduce national debt Control inflation Increase government revenue Enhance foreign investment None 23. Which of these is a goal of income redistribution policies? Increase tax evasion Increase income inequality Promote social equity Encourage monopolies None 24. Public works programs are often implemented by governments to: Increase tax revenue Create employment and stimulate demand Increase interest rates Decrease inflation None 25. A government’s social welfare policy primarily aims to: Increase public debt Improve the standard of living and reduce poverty Decrease interest rates Encourage private monopolies None 26. The main objective of anti-trust policies is to: Increase monopoly power Promote competitive markets Increase prices Limit international trade None 27. When a government lowers taxes during a recession, it aims to: Decrease aggregate demand Increase disposable income and stimulate consumption Raise interest rates Reduce exports None 28. The objective of tariffs and import quotas is typically to: Promote free trade Protect domestic industries from foreign competition Increase exports Encourage foreign investment None 29. Supply-side economic policies are generally intended to: Increase government spending Improve the efficiency and productivity of the economy Reduce the money supply Decrease tax revenue None 30. An expansionary monetary policy generally involves: Increasing tax rates Raising interest rates Increasing the money supply to encourage borrowing Reducing government spending None 31. A carbon tax is an environmental policy tool aimed at: Promoting renewable energy Reducing greenhouse gas emissions by taxing carbon emissions Lowering energy costs Increasing industrial output None 32. Which of the following is an objective of inflation targeting by central banks? Increase tax revenues Stabilize prices within a specific range Maximize employment Increase exports None 33. The objective of public debt management policy is to: Maximize government revenue Ensure sustainable levels of government borrowing Increase the money supply Increase public spending None 34. A progressive tax system is designed to: Benefit high-income groups only Tax everyone at the same rate Tax higher incomes at higher rates, aiming for equity - (D) Increase income inequality Increase income inequality None 35. The primary goal of monetary policy in a recession is to: Increase tax rates Decrease the money supply Stimulate economic growth by lowering interest rates Increase tariffs None 36. What is the main objective of a minimum wage policy? Encourage employers to hire more workers Ensure workers receive fair compensation and reduce poverty Reduce employment rates Lower consumer prices None 37. To prevent an overheating economy, the central bank might: Increase interest rates to reduce borrowing Lower taxes Increase government spending Reduce reserve requirements None 38. In international trade, “protectionism” refers to: Eliminating all trade barriers Imposing restrictions like tariffs and quotas to protect domestic industries Encouraging foreign investment Promoting free trade None 39. A government’s goal in promoting research and development is to: Increase short-term profits Enhance innovation and long-term economic growth Reduce employment Lower wages None 40. Expansionary fiscal policy is used primarily to: Increase the budget surplus Stimulate economic growth by increasing government spending and reducing taxes Control inflation Increase interest rates None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. Wishing you great success in your career journey! Time's upTime is Up!
