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Monetary & Fiscal Policy Released Questions

Authored by Allison Gates

Social Studies

11th Grade

Monetary & Fiscal Policy Released Questions
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8 questions

Show all answers

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.​

increasing
decreasing

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)   .

increasing government spending
decreasing government spending
decreasing taxes
increasing taxes

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