Monetary Policy Questions

Front

Which body of governance is in charge of monetary policy and fiscal policy?

Back

The Federal Reserve

Front

What ways/actions of fiscal policy can be taken to influence the economy?

Back

Increasing government spending and decreasing taxes

Front

Which of the following is a way/action of monetary policy that can be taken to influence the economy? Increasing government spending, Adjusting interest rates, Implementing tax cuts, Regulating trade policies

Back

Adjusting interest rates

Front

How many Federal bank districts are there in the United States?

Back

12

Front

Which option is not a way which the Federal Reserve manages the money supply? Options: Open Market, Reserve Requirement, Discount Rate

Back

Increasing Government Spending

Front

How are the Federal Reserve Chairs selected and for how long?

Back

Appointed by the President, Senate approval for 4 years

Front

Under what circumstances is it better to grow the money supply? Options: During periods of economic recession to stimulate growth., When inflation is high to curb spending., When unemployment is low and the economy is overheating., During periods of high prices and increased spending.

Back

During periods of economic recession to stimulate growth.

Front

What should a government do to ensure that money continues to flow through an economy at an appropriate level? Options: Implement monetary policies, Increase taxes, Reduce government spending, Encourage imports

Back

Implement monetary policies

Front

How does the Reserve requirement impact the supply of money in the economy?

Back

The lower the reserve requirement the more money to loan.

Front

Who is the current Federal Reserve chair?

Back

Jerome Powell