CMAT General Awareness 1

Question 1

Which institution is responsible for monetary policy in the United States?

Accepted Answer

Federal Reserve

Answer

The Federal Reserve (the Fed) is the central bank of the U.S. and manages monetary policy.

Question 2

What does GDP stand for in economics?

Accepted Answer

Gross Domestic Product

Answer

GDP stands for Gross Domestic Product, measuring the total value of goods and services produced in a country.

Question 3

Which global organization was created to promote international trade by reducing trade barriers?

Accepted Answer

WTO

Answer

The World Trade Organization (WTO) was established in 1995 to facilitate and regulate international trade.

Question 4

What is the term for persistent increase in the general price level of goods and services?

Accepted Answer

Inflation

Answer

Inflation refers to a sustained rise in the general price level, reducing purchasing power.

Question 5

Which of the following is considered a 'bull market' in finance?

Accepted Answer

Market rising by 20% or more

Answer

A bull market is characterized by rising prices, typically when a major market index gains 20% or more.

CMAT - Common Management Admission Test Practice Test