Unit 3B/C quiz Econ

The increasing of the discount rate would be an example of with type of policy?

• Tight Monetary

• Loose Monetary

• Tight Fiscal

• Loose Fiscal

Which of the following is NOT a goal of the Federal Reserve?

• Healthy rate of inflation

• Full Employment

• Healthy GDP growth rate

• Avoiding a trade deficit

Using Open Market Operations to buy bonds and securities is a tool the Fed uses to _________ the money supply.

• Expand

• Contract

If the Fed wanted to slow the rate of inflation, they could do which of the following?

• Lower the reserve requirements

• Sell bonds and securities through O.M.O.

• Decrease the discount rate

• All of the above

The Idea that you should deregulate an industry in order to create economic growth is best associated with

• Supply side fiscal policy

• Demand side fiscal policy

• Supply side monetary policy

• Demand side monetary policy

Raising taxes on the Rich to provide more social programs and aid to lower socio-economic groups is an example of...

• Expansionary Monetary Policy

• Keynesian Economic Policy

• Contractionary Monetary Policy

• Supply side fiscal policy

An advantage of a ________ retirement account is that an employer will often match your contribution and you have a lump sum of money at retirement.

• 401k

• Pension

How much should you have in your emergency fund?

• 3-6 months of your income

• 3-6 months of your expenses

• 50% of your yearly income

• Depends on your income

Which type of investment is the least risky?

• Stocks

• Mutual Funds

• Bonds

• CDs

The amount that you originally borrow and still owe on a loan is know as your _____________

• Principle

• Interest

• APR

• None of the above