Monetary Policy and some review

Who is in charge of Monetary Policy

• The Government

• The Federal Reserve System

• The states

• The Department of the Treasury

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Which of these is NOT a monetary policy tool?

• Discount rate
• Balance Accounts
• Open Market Operation
• Reserved Requirements

If the Fed wants to increase the cost of loans, then it should adjust...

• Open Market Operations

• The Reserve Ratio

• The Discount Rate

Which policy would help fight unemployment?

• Expansionary

• Contractionary

Match the terms regarding fiscal & monetary policy

• the gov't received more tax revenue than it spent

• The Federal Reserve

• the Central bank of the USA

• Budget Surplus

• Contractionary policy

• Tight Money policy

• Expansionary policy

• Budget Deficit

• The gov't spent more money than it received in taxes

• Easy Money policy

Economic growth is important because it

• helps maintain a higher standard of living

• helps the US be more competitive in global markets

• provides the resources to deal with domestic problems

• All of the above

Which of the following is NOT a goal for

government spending and fiscal policy?

• create a budget deficit

• reduce unemployment

• increase employment opportunities

• increase aggregate demand

Which of the following occurs when

government revenues are less than

government expenditures in a given year?

• budget surplus

• balanced budget

• budget deficit

• inflation

Which of the following are elements of an

expansionary fiscal policy?

• increase taxes, increase gov't spending

• decrease taxes, decrease gov't spending

• decrease taxes, increase gov't spending

• increased taxes, decrease gov't spending