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Monetary and Fiscal Policy Test

Social Studies

12th Grade

Used 8+ times

Monetary and Fiscal Policy Test
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30 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Federal Reserve sells securities/bonds as part of Open Market Operations. What is the result?

Money supply increases. Aggregate Demand decreases

Money supply decreases. Aggregate Demand increases

Money supply decreases. Aggregate Demand decreases

Money supply increases. Aggregate Demand increases

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these would be the appropriate use of Fiscal and Monetary Policy to correct recession?

Buy bonds and raise government spending.

Sell bonds and raise government spending.

Raise interest rate and raise taxes

Raise interest rate and lower taxes

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When would the Federal Reserve by bonds and lower interest rates?

When an economy is experiencing inflation

When and economy is growing too fast

When businesses are growing too fast

When aggregate demand is decreasing

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The United States Federal income tax is a...

Proportional tax

Progressive tax

Regressive tax

Sales tax

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Federal Reserve does all of the following except...

Fiscal Policy

Check clearing for banks

Dealing with the money supply

Regulate banks

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The economy is experiencing recession. What should the President and Congress do?

Decrease taxes

Buy bonds

Decrease interest rates

Decrease spending

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Federal Reserve has how many district banks?

20

9

10

12

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