📘 Series 65 Sample Questions – Economics Section

The Economics section of the Series 65 exam evaluates your understanding of key macroeconomic and microeconomic concepts, including monetary and fiscal policy, business cycles, interest rates, inflation, and global economics. Mastering this section requires both conceptual knowledge and the ability to apply that knowledge to real-world scenarios.

Use these sample questions to test your understanding and identify areas for further review.

🧠 Sample Question 1 – Business Cycles

Which phase of the business cycle is typically associated with increasing interest rates and tightening monetary policy?
A. Expansion
B. Peak
C. Recession
D. Trough

✅ Correct Answer: B. Peak
At the peak, economic activity is at its highest, often prompting the Federal Reserve to raise interest rates to prevent inflation.

💰 Sample Question 2 – Monetary Policy

If the Federal Reserve wants to stimulate economic growth, which of the following actions would it most likely take?
A. Sell government securities
B. Increase the discount rate
C. Raise the reserve requirement
D. Buy government securities

✅ Correct Answer: D. Buy government securities
Buying government securities injects liquidity into the banking system, lowering interest rates and encouraging borrowing and spending.

🌍 Sample Question 3 – Currency Exchange

If the U.S. dollar appreciates relative to the euro, what is the most likely impact on U.S. exports to Europe?
A. Exports will increase
B. Exports will decrease
C. No impact
D. Imports from Europe will decline

✅ Correct Answer: B. Exports will decrease
A stronger dollar makes U.S. goods more expensive for European buyers, reducing export demand.

📊 Sample Question 4 – Inflation

Which of the following is most likely to occur during a period of unexpected inflation?
A. Bond prices rise
B. Purchasing power increases
C. Interest rates fall
D. Fixed-income investors are hurt

✅ Correct Answer: D. Fixed-income investors are hurt
Unexpected inflation erodes the real return on fixed payments, making bonds and other fixed-income investments less attractive.

🏦 Sample Question 5 – Fiscal Policy

Which of the following actions represents an expansionary fiscal policy?
A. Increasing income taxes
B. Reducing government spending
C. Increasing the discount rate
D. Increasing infrastructure spending

✅ Correct Answer: D. Increasing infrastructure spending
More government spending stimulates demand and can help pull an economy out of recession.

🎯 Strengthen your Series 65 prep with more topic-specific practice questions and exam simulations at finra-exam-mastery.com – Trusted by serious candidates preparing for real success.