Fiscal and Monetary policy

Monetary policy primarily deals with...

• the unemployment rate.
• the budget.
• the amount of money in circulation.
• the tax rate.

Monetary policy is primarily controlled by...

• Congress.
• the President.
• the House of Representatives.
• the Federal Reserve System (The Fed).

The federal requirement to keep a certain percentage of money at the FED is know as the ...

• reserve requirement

• discount rate.

• mutual fund.

• prime (interest ) rate.

The interest that the Fed charges banks to borrow money.

• The Reserve Requirement
• The Subprime Rate
• The Discount Rate
• The Counterbalance Ratio

When the economy is experiencing inflation, the Fed will often...

• decrease discount rates.

• decrease the reserve requirement.

• increase discount rates.

• Do nothing

What deals with taxes and government spending?

• Monetary Policy
• Fiscal Policy
• Trade Policy
• Labor Policy

When the government spends more than it collects.

• Surplus
• Supply
• Deficit
• Demand

The FED increases the money supply by selling bonds and securities.

• True

• False

What type of Fiscal policy is hard to implement because it is not popular with households?

• Contractionary Fiscal Policy

• Mercantilism

• Expansionary Fiscal Policy

• Monetarism

Who controls monetary policy by regulating the nation's banks?

• Federal Trade Commission

• Securities and Exchange Commission

• Federal Reserve

• Internal Revenue Service