
Monetary & Fiscal Policy Released Questions
Authored by Allison Gates
Social Studies
11th Grade

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8 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The Federal Reserve System uses monetary tools to regulate the nation’s money supply and moderate the effects of expansion and contraction in the economy.
What action would the Federal Reserve take if it wanted to reduce the money supply?
decrease the amount of loans banks can issue
purchase government securities
increase the discount rate
decrease the reserve requirement
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When might the US government institute an contractionary economy policy?
When unemployment is high.
When the inflation rate is too high and products are becoming too expensive to afford.
When the inflation rate is too low and it is looking to stimulate the economy.
When a stimulus package is needed to bail out banks and other large businesses who employ millions of Americans.
3.
DRAG AND DROP QUESTION
1 min • 1 pt
The expansionary policy involves (a) the money supply and (b) the discount rate.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The contractionary policy involves:
increasing interest rates
increasing the money supply
decreasing the reserve requirement for banks
buying bonds from banks
5.
CATEGORIZE QUESTION
3 mins • 1 pt
The Federal Reserve system takes actions to regulate the economy. Drag and drop the appropriate item in the correct column.
Groups:
(a) Decrease money supply (Contractionary)
,
(b) Increase Money Supply (Expansionary)
Increase reserve requirements
Goal is to decrease consumer spending
Raise Interest Rates
Goal is to increase consumer spending
Increase the discount rate
Lower Interest rates
Decrease reserve requirements
Decrease discount rate
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In times of economic recession, the Federal Reserve Board tries to encourage economic growth by:
decreasing the money supply
ending unemployment benefits
raising taxes on all money supply
lower interest rates
7.
DROPDOWN QUESTION
1 min • 1 pt
The federal government uses fiscal policies to maintain economic stability, including making changes to taxes and government spending. The government can try to stimulate economic growth by (a) and (b) .
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