Passage: Inflation measures the rate at which the general level of prices rises. When inflation is high, the purchasing power of money falls. Central banks often raise interest rates to slow price increases. What is one tool central banks use against inflation?
Answer and explanation
Correct answer: B. Raising interest rates
The passage mentions that central banks raise interest rates to slow price increases.
Practise more Structure, Written Expression, and Academic Reading.
Free questions with an explanation for every one, and full timed SPMB PKN STAN mock tests.
More Structure, Written Expression, and Academic Reading questions
- The Ministry of Finance _______ a comprehensive fiscal reform package before the parliamentary budget session convened.
- Neither the Directorate General of Taxes nor the customs officers _______ aware of the fraudulent invoice scheme.
- Had the state audit agency examined the municipal treasury records earlier, the budget discrepancy _______ detected promptly.
- The committee recommended that the tariff on luxury electric vehicles _______ reduced to stimulate domestic adoption.
- Despite _______ significant currency volatility, the national foreign exchange reserves remained resilient throughout the fiscal quarter.
- Not only _______ the government meet its tax collection quota, but it also reduced the sovereign debt deficit ratio.