Fed Keeps Interest Rates Steady as Inflation Remains High
Practice B1 English reading with 5 questions based on the Daily News article “Fed Keeps Interest Rates Steady as Inflation Remains High”.
About this practice test
Practice B1 English reading with 5 questions based on the Daily News article “Fed Keeps Interest Rates Steady as Inflation Remains High”.
What you’ll practice
Finding detail
Locate specific information and evidence.
Interpreting ideas
Connect main points and inferences.
Evaluating arguments
Assess claims, evidence, and limitations.
What to expect:
5 questions with explanations to review after submission.
Study the questions and tasks
Work through the material below, or start the interactive practice above to complete an attempt. Try the exercises before opening any answer or transcript sections, then use them to review your work.
- Practice level
- B1. Try this level if you can follow the instructions and understand most of the language; choose an earlier level if you need more support.
- Question formats
- Single choice
How to approach this practice
Read the passage for its main idea, then return to the relevant sentence or paragraph for each question. Base answers on the passage.
News lesson for this practice
Read the complete article and use its text or audio alongside these exercises: Fed Keeps Interest Rates Steady as Inflation Remains High.
Fed Keeps Interest Rates Steady as Inflation Remains High
The Federal Reserve kept its benchmark interest rate unchanged on October 28, even as officials acknowledged that inflation remains elevated. The decision leaves borrowing costs at their current level while the central bank continues to deal with price increases in the economy. The Federal Reserve is the central bank of the United States. Its benchmark rate affects the cost of many loans, including some business loans and consumer credit. When…
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Question 1 · Single choice
Choose one answer.
What is the main idea of the article?
Return to the passage, recording or visual- Three news events affected people in different ways.
- The Federal Reserve announced a large rate increase.
- A cruise company described its travel plans.
- A judge explained the details of a legal case.
Check answers and explanations
- Answer
- Three news events affected people in different ways.
The article connects three different international news developments.
Together, the stories showed how economic decisions, legal developments and travel problems can affect people in different parts of the world.
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Question 2 · Single choice
Choose one answer.
Why might the Federal Reserve raise rates when inflation stays high?
Return to the passage, recording or visual- To make loans easier to obtain
- To slow spending and reduce price pressure
- To help passengers leave Cambodia
- To identify a federal judge
Check answers and explanations
- Answer
- To slow spending and reduce price pressure
Higher rates may slow spending and reduce pressure on prices.
When inflation stays high, a central bank may raise rates to slow spending and reduce pressure on prices.
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Question 3 · Single choice
Choose one answer.
What does “The decision” refer to in paragraph three?
Return to the passage, recording or visual- The judge's death
- The cruise ship's departure
- The choice to delay another rate move
- The report's missing details
Check answers and explanations
- Answer
- The choice to delay another rate move
It refers to the Federal Reserve's choice to wait before changing rates.
The decision to wait means that officials are continuing to watch economic information before making another move.
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Question 4 · Single choice
Choose one answer.
What can be inferred about the judge from the article?
Return to the passage, recording or visual- The judge worked on a federal legal case.
- The judge worked for the cruise company.
- The judge made the rate decision.
- The judge lived in Cambodia.
Check answers and explanations
- Answer
- The judge worked on a federal legal case.
The judge was involved in overseeing the prosecution of Maduro.
The news roundup also reported that the federal judge overseeing the prosecution of former Venezuelan president Nicolas Maduro died at the age of 92.
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Question 5 · Single choice
Choose one answer.
How is the article organized?
Return to the passage, recording or visual- It compares two central banks in detail.
- It presents several news stories one after another.
- It tells one passenger's personal story.
- It explains a court hearing step by step.
Check answers and explanations
- Answer
- It presents several news stories one after another.
It presents the rate decision, legal news, and travel disruption in sequence.
In another development, hundreds of passengers aboard a cruise ship became stranded in Cambodia.
What to review next
Find the words that support each answer. For a mistake, compare the question with the evidence and identify the detail or inference you missed.
A focused practice result shows how you did on these tasks. Use several activities across skills to decide what to study next; one practice score does not certify an overall CEFR level.
Before you practise: a worked example
Look for evidence in the text. Separate what the writer says from what you already know about the topic.
The library normally closes at six, but on Fridays it stays open until eight. When does it close on Friday?
The answer is eight. But introduces an exception to the normal closing time, so the first time mentioned is not the answer.
This teaching example is separate from the scored questions. After your test, compare any mistakes with the explanation and revisit the topic before trying again.