Unit 1 Part 2 Quiz - EPF

The percentage of deposits that banks cannot loan out is called the

• Reserve requirement

• Discount rate

• Open market operation

• Federal funds rate

What goods are NOT included in GDP?

• Financial transactions, used goods, final goods

• Intermediate goods, non-production transactions, non-market/illegal activities

• Intermediate goods, non-production transactions, exports

• Exports, used goods, non-market/illegal activities

The goals, tools (idk cant read it) of fiscal policy are

• Taxes and open market operations

• Government spending and taxes

• Discount rate, reserve requirement, an open market operations

• Government spending and discount rate

The three functions of money are:

• Store of value, medium of exchange, fiat money

• Medium of exchange, unit of account, store of value

• Medium of exchange, store of value, commodity money

• Unit of account, store of value, barter

The job of the Federal Reserve is to

• draft pieces of legislation aimed at stabilizing the economy

• print and maintain money supply

• regulate banks and make sure people have faith in the U.S. financial system

• monitor the gold supply in the United States

Fiscal policy is actions taken by ___ to stabilize the economy

• producers

• the Federal Reserve Bank

• lawmakers

• the U.S. Department of Labor

When would the Federal Reserve want to use contractionary monetary policy?

• To balance the federal budget

• To fight unemployment

• To fight inflation

• To move the U.S> economy out of a recession

Monetary policy is actions taken by ___ to stabilize the economy.

• The Federal Reserve Bank

• The U.S. Department of Labor

• Congress

• Labor Unions

Which of the following measures the change in price of a market basket of commonly purchased goods and services?

• Consumer price index

• Unemployment rate

• Inflation rate

• Nominal GDP

The dollar value of all final goods and services produced within a country in one year is

• gross domestic product

• unemployment

• demand

• inflation