Fiscal and Monetary Policy

Multiple Choice

Who controls fiscal policy?

• The Federal Reserve

• The Federal Government

• The FBI

• Federal Income Tax

Multiple Choice

What is the purpose of Fiscal Policy?

• contribute to economic growth and stability

• keep rich people from getting too rich

• functions exactly like Fiscal Policy

• give Congress and the political parties more control of the economy

Multiple Choice

During economic crisis, the primary role of the Federal Government is to promote a healthy economy by...

• controlling the budget

• setting spending levels

• manipulating taxes and government spending

• loaning out money

Multiple Choice

During a recession, the Federal Government should use...

• Expansionary Policy

• Contractionary Policy

Multiple Choice

During rapid expansion, the Federal Government should use...

• Expansionary Policy

• Contractionary Policy

Multiple Choice

The central bank in the USA that regulates the monetary system

• The FED
• FDIC
• The IRS
• Social Security

Multiple Choice

What is the primary function of the Federal Reserve?

• To issue currency

• To regulate the stock market

• To manage the national debt

• To oversee state banks

Multiple Choice

How many federal districts are there?

• 12

• 25

• 30

• 7

Multiple Choice

Lowering interest rates to stimulate the economy is called:

• Contractionary Fiscal Policy

• Expansionary Fiscal Policy

• Expansionary monetary policy

• Contractionary Monetary Policy

Multiple Choice

Expansionary monetary policy causes interest rates to _________

• rise

• fall

Multiple Choice

Contractionary monetary policy causes interest rates to _________

• rise

• fall