Monetary & Fiscal Policy: Crash Course Government & Politics 48

What is the primary task of the Federal Reserve System?

• Managing international trade agreements

• Setting tax rates

• Regulating government spending

• Controlling inflation and encouraging full employment

When was the Federal Reserve System created?

• 1776

• 1865

• 1913

• 1920

What is the main way the Federal Reserve controls the money supply?

• Investing in the stock market

• Printing more currency

• Raising taxes

• Setting interest rates

What is the purpose of the bank reserve requirement?

• To reduce government debt

• To encourage borrowing

• To increase inflation

• To prevent catastrophic bank runs

What is the main way the Federal Reserve influences the money supply through Open Market Operations?

• Setting international trade policies

• Investing in foreign currencies

• Directly lending money to individuals

• Buying and selling government debt

What is the primary reason for the government's deficit despite steady tax revenue?

• High interest payments

• Excessive government spending

• Borrowing to fund spending

• Low tax rates

What is the largest chunk of government spending that goes into defense?

• Over $600 billion

• Over $400 billion

• Over $300 billion

• Over $200 billion

What is the second largest item of government spending after defense?

• Infrastructure development

• Social Security

• Department of Education

• Healthcare for the poor, Medicaid

What is the main lever in broad-based macroeconomic policy due to Americans' aversion to raising taxes and limited ability to cut spending?

• Monetary policy

• Fiscal policy

• Foreign aid programs

• International trade agreements

What organization supports nonprofits that use technology and media to advance social equity?

• Thought Cafe

• Federal Reserve System

• PBS Digital Studios

• Voqal