CSTP Semester Exam B Review

The official paper currency of the United States is called a

•  

  Federal Bank note

•  

  Federal Cash note

•  

  Federal Reserve note

What are the two basic tools that the federal government uses to influence the economy?

•  

  taxation and spending

•  

  entitlements and wages

If the government spends more than it takes in, what is that called?

•  

  balanced budget

•  

  budget deficit

•  

  budget surplus

_________ is the total amount borrowed by the federal government.

•  

  National Debt

•  

  Discretionary Spending

Monetary policy deals with the nation's what?

• Money

• Banks

•  

  All of the items listed

Taxes placed on an individual's income are called _________.

•  

  Excise Taxes

•  

  Income Taxes

Any law passed to limit free trade between nations is called a trade

• barrier

• cartel

Taxes on imports which are levied specifically to raise money are called

•  

  protective embargoes

•  

  revenue embargoes

•  

  revenue tariffs

What is a trade barrier?

•  

  A means of preventing a product or service from freely entering a country

•  

  a barrier to trade between countries

An Import Quota is a limit on the amount of a specific good that can be imported.

• True

• False