Fiscal and Monetary Policy

Which of the following are fiscal policy tools? (Check all that apply)

• Taxation

• Spending

• Interest Rates

• Transfer Payments

Which of the following are monetary policy tools? (Check all that apply)

• Open Market Operations

• Interest on Reserves

• Transfer Payments

• Discount Rate

Who is responsible for fiscal policy in the United States?

• The World Bank

• Bank of New England

• Congress

• Federal Reserve

One of the main challenges with fiscal policy is

• International trade imbalances

• Government corruption

• International trade barriers

• Lag time

Which of the following is a fiscal policy that is appropriate to combat inflation?

• Increasing taxes

• Increasing government spending

• Increasing government transfers

• Increasing interest rates

Which of the following is a fiscal policy that is appropriate to combat unemployment?

• Increasing taxes

• Increasing interest rates

• Increasing government spending

• Decreasing government spending

Which of the following is a fiscal policy that is appropriate if the economy is experiencing a deep recession?

• Increasing taxes

• Decreasing government spending

• Increasing transfers

• Increasing interest rates

What is the name of the central bank of the United States?

• The Bank of Washington

• The Federal Reserve

• The Hamiltonian Bank

• The Institution for Savings

Who is responsible for monetary policy in the United States?

• Congress

• Federal Reserve

• The World Bank

• The Bank of America

What is the name of the interest rate that a commercial bank pays when it gets a loan directly from the Federal Reserve?

• Nominal rate

• High value rate

• Discount rate

• Sub-prime rate