Monetary and Fiscal Policy

Monetary and Fiscal Policy

11th Grade

16 Qs

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Monetary and Fiscal Policy

Monetary and Fiscal Policy

Assessment

Quiz

Social Studies

11th Grade

Practice Problem

Medium

Created by

Emma Stevens

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16 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary task of the Federal Reserve System?

To control inflation and encourage full employment

To print and distribute currency

To set educational policies

To manage national parks

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In what year was the Federal Reserve System created?

2001

1913

1776

1945

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main way the Fed controls the money supply?

By setting the national budget

By controlling interest rates

By regulating the stock market

By printing money

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the bank reserve requirement determine?

The number of banks in a region

The interest rates for student loans

The CEO's salary

The amount of money a bank can lend

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Quantitative Easing?

A method of reducing taxes

A strategy to increase bank reserves

A way to influence the money supply by buying and selling government bonds

A fitness program for bankers

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What effect do low interest rates usually have on the economy?

They lead to a decrease in investments

They decrease consumer spending

They increase the cost of borrowing

They cause inflation and reduce unemployment

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is fiscal policy?

The guidelines for creating new money

The process of electing Federal Reserve officials

The government's ability to raise taxes and spend money

The government's use of interest rates to regulate the economy

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