Unit 6: Monetary and Fiscal Policy

Unit 6: Monetary and Fiscal Policy

9th - 12th Grade

15 Qs

quiz-placeholder

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Unit 6: Monetary and Fiscal Policy

Unit 6: Monetary and Fiscal Policy

Assessment

Quiz

Social Studies

9th - 12th Grade

Medium

Created by

Kendrick Thompson

Used 21+ times

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15 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the Federal Reserve raises interest rates to combat rapid inflation, what might be a negative outcome?

Unemployment rates would rise
taxes will rise 
The government would put a freeze on prices
international trade would stop 

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

Which of the following is a monetary policy action used to combat a recession?

increasing the reserve requirement

increasing the money supply

decreasing the money supply

increasing interest rates

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT

decreasing the discount rate.
increasing the reserve requirement.
selling securities on the open market.
making banks hold a reserve for all types of deposits.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? 
(monetary / fiscal)

increase the reserve requirement / increase government spending
sell government securities / decrease taxes
decrease the discount rate / increase government spending
buy government securities / decrease government spending

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would

A. lower interest rates because low interest rates encourage businessgrowth and expansion
B. raise interest rates to encourage business growth and expansion
C. increase the discount rate which would increase the money supply
D. increase consumer spending by reducing the money supply

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The rate the Fed charges banks for a loan

Discount rate
Federal fund rate
reserve ratio
prime rate

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would be

decreasing taxes.
decreasing government spending.
reducing the budget deficit
increasing taxes

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