Monetary and Fiscal Policy Review

What term is defined as "a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency"?

• Fiscal Policy

• Gross Domestic Product

• Inflation

• Deflation

Which term refers to "tools used to stimulate the economy during a recession"?

• Expansionary Policy

• Contractionary Policy

• Monetary Policy

• Fiscal Policy

What is the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral called?

• Budget policy rate

• Discount rate

• Collateral rate

• Federal loan rate

What does the policy of a government in controlling its own expenditures and taxation refer to?

• Fiscal policy

• Monetary policy

• Budgetary control

• Economic strategy

What measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Balance of Trade

• Economic Indicator

What is a sum paid or charged for the use of money or for borrowing money known as?

• Dividend

• Interest

• Profit

• Revenue

What is an attempt to achieve broad economic goals by the regulation of the supply of money called?

• Fiscal management

• Monetary policy

• Economic planning

• Budgetary control

What is the U.S. federal banking system that is under the control of a central board of governors with a central bank in each of 12 districts and that has wide powers in controlling credit and the flow of money as well as in performing other functions, as regulating and supervising its member banks?

• The Federal Reserve System

• The Central Banking System

• The National Credit Union

• The American Banking Association

What are the tools used to stabilize the economy in times of inflation?

• Contractionary Policies

• Expansionary Policies

• Monetary instruments

• Fiscal measures

What is a fall in the general price level or a contraction of credit and available money called?

• Deflation

• Depression

• Recession

• Contraction