Monetary & Fiscal Policies (Civic Literacy)

Who is in charge of Monetary Policy?

• State Governments

• The Federal Reserve System

• Federal Trade Commission

• The Department of the Treasury

The Federal Reserve's primary job is to

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

An expansionary policy means that the Fed is attempting to

• increase the size of the nation's money supply

• decrease the size of the nation's money supply

• stagnate the size of the nation's stock prices

A contractionary policy means that the Fed is attempting to

• increase the size of the nation's money supply

• decrease the size of the nation's money supply

Which policy would help fight inflation?

• Expansionary

• Contractionary

Which policy would help fight unemployment?

• Expansionary

• Contractionary

During an expansion that is growing too fast, the Fed should use...

• an expansionary policy

• a contractionary policy

Which of the following scenarios would cause the nation’s money supply to increase?

• Decreasing government spending

• Lowering interest rates

• Raising interest rates

• Selling apples in the orchard

The Fed keeps a certain amount of money out of circulation. This is referred to as....

• Reserve requirement
• Emergency Fund
• Stockpile
• Hoard

Which of the following are responsible for making fiscal policy decision?

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Advisors

• The Commerce Department