Crash Course: Monetary and Fiscal Policy

How does this video define monetary policy?

• How the government manages taxes

• The way the government regulates the amount of money in circulation

• How the government decides what to spend money on

• Growing the stock market

Who is in charge of monetary policy?

• The President

• The Senate

• The states

• The Federal Reserve

What are the Fed's two primary tasks?

• Approve loans

• Control Inflation

• Encourage full employment

• Print money

What does he say are the most important things the Fed does?

• Certify Checks

• Set the annual budget

• Loan money to banks

• Set interest rates

What is the bank reserve requirement?

• How much money a bank must have on hand

• The federal interest rate

• How many loans the bank must approve

• The interest rate that the Federal Reserve charges

What is inflation?

• The national interest rate

• The amount of money in circulation

• How much things cost

• A general rise in prices

What does fiscal policy refer to?

• How the government spends money

• How the Federal Reserve works

• How much money the government prints

• The government's ability to raise taxes

How does the government borrow money?

• By selling bonds

• By asking for donations

• By operating a fundraiser

• By asking other countries nicely

About what percentage of our government's revenue is from taxes?

• Between 10 and 20

• Between 35 and 43

• Between 43 and 50

• Between 55 and 60

How much did the government take in and spend in 2013?