EOC SKILLS: Things we DON'T Know (Econ)

The United States government has decided to issue federal income TAX REBATES to taxpayers, What is the MOST LIKELY goal of these rebates?

• Increased transfers for payments to Congress

• Reduction in the Military budget

• Reduction in the unemployment rate

• Increased consumer spending

The Federal Reserve wants to reduce the DISCOUNT RATE for commercial banks. This will have what ultimate impact for the economy

• Decrease spending

• Increase the money supply

• Force the banks to close

• Open the securities Market

The United States government wants to Buy and Sell GOVERNMENT SECURITIES. This is most likely an attempt from the government to do what?

• Control the Stock Market and dictate money for all states

• To prevent other countries from conducting business

• Finance Government spending and regulate the money supply

• Decrease all spending in the Country.

What is the MAIN GOAL of the Federal Reserve?

• Curb Recessions, Maximize employment, and stabilize prices across the US.

• To stop spending and decrease the economy.

• To control the Government and its policies.

• To completely regulate the stock market

If the Federal Government is running a DEFICIT, then it is most likely doing what?

• Spending less than it earns or makes

• Spending the same amount as it makes

• Spending more than it earns or makes

• Neglecting its responsibilities

AGGREGATE DEMAND IN THE US IS INFLUENCED BY

• Governmental Spending

• Consumer Debt

• Commercial Real-estate

• Consumer Goods and Services

The Federal Government has announced that it will begin to implement a LOOSE MONETARY POLICY, this most likely means what?

• The Government will disallow all banks to loan money to consumers.

• The Government will attempt to increase employment and credit to stimulate spending

• The Government will regulate the loans given to banks more stringently

• The Government will decrease spending and credit to slow down the economy.

FISCAL POLICY most likely explains, ___________________ to influence the economy.

• the government's use of debt

• the government's use of employment

• the government's use of loans

• the government's use of taxation

MONETARY POLICY used by the banks is best described as....

• Tools to control money supply or interest rates

• Measurements of Goods and Services

• Measurements of employment

• Tools to control loan ratios

Although the members of the Board of Governors of the FEDERAL RESERVE SYSTEM are appointed by the president, the Board does not receive funding from Congress. The seven members serve a 14 year term, and report to the Speaker of the House once a year. This MOST LIKELY result in

• more oversight from the legislative branch

• significant control by the Treasury Department

• more oversight from the executive branch

• relative independence of the Federal Reserve System