HFA Test 2 – Exam Prep 2025/2026 | 80+ Questions | Fiscal & Monetary Policy, Economics, Capital Cost & Market Systems

This document features 80+ exam-focused questions and model answers for HFA Test 2, part of the Indiana Health Facility Administrator (HFA) licensure preparation for the 2025/2026 cycle. Unlike purely regulatory material, this portion of the exam emphasizes broader economic, financial, and policy-related knowledge critical for health facility managers overseeing budgets, planning, and compliance in institutional settings. The topics are derived from foundational economic theories and real-world policy tools, including: Monetary policy tools: federal funds rate, interest rate adjustments, bond operations Expansionary and contractionary policies, and their role in employment and inflation control Fiscal policy mechanisms: government spending, taxation, and economic stimulation Key historical frameworks such as the Gold Standard and Bretton Woods System Economic schools of thought: Keynesian vs. Neoclassical, Milton Friedman and Monetarism Exchange rate systems, floating vs. fixed Basic financial concepts: standard deviation, coefficient of variation, cost of capital, cost of equity Introduction to risk, return, and economic reasoning applicable in administrative and investment planning This guide is ideal for: AIT candidates and licensed administrators in Indiana preparing for multi-topic HFA tests Health facility managers who require operational and financial literacy for budgeting, compliance, and facility oversight Students in healthcare administration, public health policy, or business management programs Professionals pursuing CEU or multi-disciplinary exam prep involving both regulatory and financial domains Structured in a clean, answer-verified format, this guide helps reinforce concepts through repetition, short-answer definitions, and applied examples—ensuring broad understanding of healthcare administration from a strategic, economic perspective. Keywords: HFA exam, Indiana health administration, AIT, monetary policy, fiscal policy, interest rates, Keynesian economics, neoclassical, Milton Friedman, cost of capital, cost of equity, standard deviation, coefficient of variation, floating exchange rate, economic theory, healthcare budgeting, financial literacy, HFA licensure prep, public policy, federal reserve