The Central Bank of Brazil

Description: Test your knowledge about the Central Bank of Brazil, its role in the Brazilian economy, and its policies.
Number of Questions: 14
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Tags: economics economic policymaking central bank of brazil
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What is the primary objective of the Central Bank of Brazil?

  1. To maintain price stability.

  2. To promote economic growth.

  3. To ensure financial stability.

  4. To manage the country's foreign exchange reserves.


Correct Option: A
Explanation:

The Central Bank of Brazil's primary objective is to maintain price stability, which it achieves by controlling inflation.

Which monetary policy instrument does the Central Bank of Brazil primarily use to achieve its objectives?

  1. Open market operations.

  2. Reserve requirements.

  3. Discount rate.

  4. Foreign exchange intervention.


Correct Option: A
Explanation:

The Central Bank of Brazil primarily uses open market operations, which involve buying and selling government securities, to influence the money supply and interest rates.

What is the target inflation rate set by the Central Bank of Brazil?

  1. 2.5%.

  2. 3.0%.

  3. 3.5%.

  4. 4.0%.


Correct Option: C
Explanation:

The Central Bank of Brazil targets an inflation rate of 3.5% per year, with a tolerance range of 1.5 percentage points.

What is the name of the Central Bank of Brazil's benchmark interest rate?

  1. SELIC rate.

  2. IPCA rate.

  3. IGP-M rate.

  4. CDI rate.


Correct Option: A
Explanation:

The Central Bank of Brazil's benchmark interest rate is the SELIC rate, which is used to signal the central bank's monetary policy stance.

What is the main function of the Central Bank of Brazil's Foreign Exchange Department?

  1. To manage the country's foreign exchange reserves.

  2. To regulate the foreign exchange market.

  3. To promote foreign investment in Brazil.

  4. To facilitate international trade.


Correct Option: A
Explanation:

The main function of the Central Bank of Brazil's Foreign Exchange Department is to manage the country's foreign exchange reserves, which are used to support the Brazilian currency and intervene in the foreign exchange market.

What is the name of the Central Bank of Brazil's payment system?

  1. PIX.

  2. TED.

  3. DOC.

  4. EFT.


Correct Option: A
Explanation:

The Central Bank of Brazil's payment system is called PIX, which is an instant payment system that allows individuals and businesses to make and receive payments in real time.

What is the name of the Central Bank of Brazil's financial inclusion program?

  1. Bolsa Família.

  2. Auxílio Brasil.

  3. Minha Casa, Minha Vida.

  4. Programa Nacional de Microcrédito Produtivo Orientado (Pronampe).


Correct Option: D
Explanation:

The Central Bank of Brazil's financial inclusion program is called Programa Nacional de Microcrédito Produtivo Orientado (Pronampe), which provides microcredit loans to small businesses and entrepreneurs.

What is the name of the Central Bank of Brazil's economic research department?

  1. Departamento de Estudos Econômicos (DEE).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's economic research department is called Departamento de Estudos Econômicos (DEE), which conducts research on economic issues and provides economic forecasts.

What is the name of the Central Bank of Brazil's financial stability department?

  1. Departamento de Estabilidade Financeira (DEF).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's financial stability department is called Departamento de Estabilidade Financeira (DEF), which is responsible for monitoring and assessing risks to the financial system.

What is the name of the Central Bank of Brazil's bank supervision department?

  1. Departamento de Supervisão Bancária (DESUP).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's bank supervision department is called Departamento de Supervisão Bancária (DESUP), which is responsible for supervising banks and other financial institutions.

What is the name of the Central Bank of Brazil's insurance supervision department?

  1. Departamento de Supervisão de Seguros (DSUS).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's insurance supervision department is called Departamento de Supervisão de Seguros (DSUS), which is responsible for supervising insurance companies.

What is the name of the Central Bank of Brazil's pension fund supervision department?

  1. Departamento de Supervisão de Fundos de Pensão (DESFP).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's pension fund supervision department is called Departamento de Supervisão de Fundos de Pensão (DESFP), which is responsible for supervising pension funds.

What is the name of the Central Bank of Brazil's capital markets supervision department?

  1. Departamento de Supervisão de Mercados de Capitais (DESMAC).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's capital markets supervision department is called Departamento de Supervisão de Mercados de Capitais (DESMAC), which is responsible for supervising capital markets.

What is the name of the Central Bank of Brazil's financial consumer protection department?

  1. Departamento de Proteção e Defesa do Consumidor (DPDC).

  2. Departamento de Política Monetária (DEPOM).

  3. Departamento de Operações de Mercado Aberto (DOMA).

  4. Departamento de Regulação do Sistema Financeiro (DEREG).


Correct Option: A
Explanation:

The Central Bank of Brazil's financial consumer protection department is called Departamento de Proteção e Defesa do Consumidor (DPDC), which is responsible for protecting the rights of financial consumers.

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