Fiscal/Monetary Quiz Review

a rise in the cost of goods and services

• inflation
• discount rate
• interest
• monetary policy

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System/Bank

• Federal Income Tax

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation

number of federal reserve district banks?

• 5

• 10

• 12

• 21

What are two main monetary tools the government (Congress) has?

• government spending and reserve requirement

• taxes and government spending

• buy/selling bonds and discount rate

• discount rate and taxes

Fiscal Policy is concerned with

• Government Spending and taxation
• Consumer spending and productivity
• Government spending and the money supply
• Taxation and inflation

"The Fed refers to the Federal Reserve System, the Central Bank of the United States. The FOMC is the Federal Open Market Committee, the group responsible for implementing monetary policy."

• Fiscal policy

• Monetary policy

"In February, lawmakers set themselves up to reach a more permanent spending agreement by the end of March. Congress agreed to increases to domestic and defense spending over the next two years, raising funding for domestic programs by $128 billion and hiking defense budgets by $160 billion. But they didn’t actually decide where the money would go."

• Fiscal policy

• Monetary policy

"The U.S. Federal Reserve is almost certain to hike interest rates Wednesday to the highest level in a decade: 1.5 to 1.75 percent. "

• Fiscal policy

• Monetary policy