CFA 2026 Level I Economics Fiscal Policy Free Quiz 1

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CFA 2026 Level I Economics Fiscal Policy Free Quiz 1

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CFA 2026 Level I Economics Fiscal Policy Free Quiz 1

Practice CFA 2026 Level I Economics MCQs from Fiscal Policy. Get instant results with Explanation.

General5 MCQs

1. What does fiscal policy involve?

A. Government spending and taxationB. Interest rates and money supplyC. Deregulation and tax incentivesD. Tariffs and trade agreements

2. What are the primary tools of fiscal policy?

A. Interest rates and money supplyB. Government spending and taxationC. Deregulation and tax incentivesD. Tariffs and trade agreements

3. What is expansionary fiscal policy?

A. Increasing taxes and decreasing spendingB. Decreasing interest ratesC. Increasing spending and decreasing taxesD. Increasing money supply

4. What is contractionary fiscal policy?

A. Increasing spending and decreasing taxesB. Decreasing interest ratesC. Increasing money supplyD. Decreasing spending and increasing taxes

5. What is a budget deficit?

A. Spending exceeds revenuesB. Revenues exceed spendingC. Spending equals revenuesD. Total outstanding government debt

General5 MCQs

6. What is the national debt?

A. The budget deficitB. The total outstanding government debtC. The interest payments on debtD. The deficit excluding interest payments

7. What is the crowding-out effect?

A. Multiplier effectB. Ricardian equivalenceC. Crowding-out effectD. Crowding-in effect

8. Which hypothesis suggests that consumers anticipate future taxes and save more to offset deficit spending?

A. Crowding-out effectB. Multiplier effectC. Laffer curveD. Ricardian equivalence

9. What is the multiplier effect in fiscal policy?

A. Multiplier effectB. Crowding-out effectC. Laffer curveD. Automatic stabilizer

10. What are automatic stabilizers?

A. Discretionary fiscal policyB. Automatic stabilizersC. Monetary policyD. Supply-side policy

📋 CFA - Test Online Practice Quizzes

CFA

Conducting Body: CFA Institute

Frequency: 4 times a year (February, May, August, November) | Time: 135 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Alternative Investments: 8 MCQs
Corporate Issuers: 7 MCQs
Derivatives: 5 MCQs
Economics: 7 MCQs
Equity Investments: 12 MCQs
Ethics: 16 MCQs
Financial Statement Analysis: 11 MCQs
Fixed Income: 11 MCQs
Portfolio Management: 9 MCQs
Quant Methods: 6 MCQs

Merit Formula: -

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