Monetary & Fiscal Policies (Civic Literacy)

Front

Who is in charge of Monetary Policy?

Back

The Federal Reserve System

Front

The Federal Reserve's primary job is to

Back

control the amount of money in circulation

Front

An expansionary policy means that the Fed is attempting to

Back

increase the size of the nation's money supply

Front

A contractionary policy means that the Fed is attempting to

Back

decrease the size of the nation's money supply

Front

Which policy would help fight inflation?

Back

Contractionary

Front

Which policy would help fight unemployment?

Back

Expansionary

Front

During an expansion that is growing too fast, the Fed should use...

Back

a contractionary policy

Front

Which of the following scenarios would cause the nation’s money supply to increase? Decreasing government spending, Lowering interest rates, Raising interest rates, Selling apples in the orchard

Back

Lowering interest rates

Front

The Fed keeps a certain amount of money out of circulation. This is referred to as....

Back

Reserve requirement

Front

Which of the following are responsible for making fiscal policy decision? The President and Congress, The Federal Reserve System, The National Council of Economic Advisors, The Commerce Department

Back

The President and Congress