U.S. Federal Reserve Bank Economist Inflation Practice Questions
The free U.S. Federal Reserve Bank Economist questions that deal with inflation, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #4
What is the Federal Reserve's inflation target?
Correct answer: D
Explanation
The Federal Reserve aims for an inflation rate of 2% as part of its dual mandate to promote maximum employment and stable prices.
Question #9
How does the Federal Reserve measure inflation?
Correct answer: D
Explanation
The Consumer Price Index (CPI) is the primary measure used by the Federal Reserve to gauge inflation.
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