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WorksheetsMonetary Policy Review #1 (CFA #7)
Total questions: 44
Worksheet time: 33mins
Name
Class
Date
1.
Monetary Policy is controlled by
a)
The Feds
b)
Congress and the President
2.
what is the purpose of Monetary Policy?
a)
contribute to economic growth and stability
b)
makes Kanye have a better chance to be President
c)
Functions like Fiscal Policy
3.
The goals of moneytary policy do NOT include the promotion of ____________.
a)
Maximum employment
b)
Stable prices
c)
Moderate long-term interest rates
d)
Low taxes
4.
The Federal Reserve changing the Reserve Requirement is an example of .....
a)
Fiscal Policy
b)
Monetary Policy
5.
Money loses its value when it
a)
It becomes too plentiful
b)
becomes too portabale
c)
is divisible
d)
is durable
6.
A period of time when recovering from a recession?
a)
peak
b)
trough
c)
expansion
d)
trend line
7.
Selling bonds
a)
increases money supply
b)
decreases money supply
8.
Buying bonds
a)
increases money supply
b)
decreases money supply
9.
High reserve requirements
a)
lower the money supply
b)
increase the money supply
10.
Low reserve requirements
a)
lower the money supply
b)
increase the money supply
11.
If the Federal Reserve wanted to stimulate the economy (make it grow), they might
a)
Sell Treasury bonds
b)
Buy Treasury bonds
c)
Spend more money
d)
Spend less money
12.
Which of the following scenarios would cause the nation’s money supply to increase?
a)
Decreasing government spending
b)
Lowering interest rates
c)
Raising interest rates
d)
Selling bonds to investors
13.
The Federal Reserve uses ______ to regulate the economy.
a)
Monetary Policy
b)
Fiscal Policy
14.
There are _______ Regional Federal Reserve Banks, and one Federal Reserve Board of Governors.
a)
50
b)
4
c)
12
d)
52
15.
The Federal Reserve is called "The Bankers Bank" because it supervises banks.
a)
False
b)
True
16.
To much money in our economy leads to
a)
Inflation
b)
Recession
17.
The interest rate the Fed charges commercial banks for loans
a)
Fed Fund Rate
b)
Reserve Requirement Rate
c)
Discount Rate
d)
I.O.U Rate
18.
Percentage of deposits that the Fed requires banks to hold back and not lend out
a)
Fed Fund Rate
b)
Reserve Requirement Rate
c)
Discount Rate
d)
I.O.U Rate
19.
The Board of Governors is appointed by the
a)
vice president
b)
president
c)
Fed
d)
state governors
20.
Which of the following is NOT one of the three goals of Monetary Policy?
a)
Moderate long term interest rates
b)
Cut taxes
c)
Maximize employment
d)
Stabilize prices
21.
*Lowering the Discount Rate
*Lowering the Reserve Requirement
*Buying securities on the open market
*Lowering the Interest Rate on Required and Excess Reserves
All of these are examples of actions that
would ________ the money supply.
*Lowering the Reserve Requirement
*Buying securities on the open market
*Lowering the Interest Rate on Required and Excess Reserves
All of these are examples of actions that
would ________ the money supply.
a)
Increase
b)
Decrease
c)
keep it he same
d)
Limit it
22.
Which part of the FED is the primary monetary policy making part?
a)
HOR
b)
BOG
c)
FOMC
d)
District Banks
23.
If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would
a)
A. cause interest rates to decrease because low interest rates encourage businessgrowth and expansion
b)
B. cause interest rates to rise because high interest rates encourage business growthand expansion
c)
C. increase the discount rate it charges banks, which would increase the money supply
d)
D. increase consumer spending by reducing the money supply
24.
The rate the Fed charges banks for a loan
a)
Discount rate
b)
Federal fund rate
c)
reserve ratio
d)
prime rate
25.
Which of the following would cause the Federal Reserve to implement expansionary monetary policy?
a)
The economy is expanding too quickly and inflation is a concern.
b)
The federal government passes a new budget with a large deficit.
c)
The economy is prosperous with low inflation.
d)
A recession has reduced aggregate demand and increased unemployment.
26.
When interest rates rise, the number of loans made by banks will
a)
increase
b)
decrease
c)
be unaffected
27.
In response to a rising Consumer Price Index, the Federal Reserve could
a)
raise taxes
b)
lower government spending
c)
lower the discount rate
d)
sell securities on the open market
28.
If the economy is in a recession, the Federal Reserve could do all of the following EXCEPT
a)
Lower taxes
b)
Lower the discount rate
c)
Buy securities
d)
Lower the required reserve ratio
29.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
30.
In Beauty and the Beast, how many eggs does Gaston eat for breakfast?
a)
Five dozen
b)
Two Dozen
c)
Three Dozen
d)
Four Dozen
31.
In Mary Poppins, what animal was on the end of Mary Poppins’ umbrella that spoke?
a)
Penguin
b)
Parrot
c)
Dove
d)
Humming Bird
32.
In the Little Mermaid when Ariel sees Prince Eric, what celebration was happening on the ship?
a)
A Wedding
b)
A Birthday Party
c)
A Baby Shower
d)
A Graduation
33.
Which is the only Disney animated film with a main character that doesn’t speak?
a)
Beauty and the Beast
b)
Dumbo
c)
Lady and the Tramp
d)
Aladdin
34.
Which one of these princesses is NOT part of Disney’s official princess lineup?
a)
Elsa
b)
Merida
c)
Mulan
d)
Belle
35.
What is the name of Bambi's rabbit friend?
a)
Hopper
b)
Thumper
c)
Bumper
d)
Fluffy
36.
What was the very first Disney movie ever made?
a)
Peter Pan
b)
Alice in Wonderland
c)
Snow White and the Seven Dwarfs
d)
Cinderella
37.
What movie is this picture from?
a)
Jungle Book
b)
Lion King
c)
Bambi
d)
101 Dalmatians
38.
What movie is this picture from?
a)
Lion King
b)
Jungle Book
c)
Cinderella
d)
Dumbo
39.
What movie is this photo from?
a)
Jungle Book
b)
Tarzan
c)
Bambi
d)
Little Mermaid
40.
Captain Hook had a hook on which of his hands?
a)
His Right
b)
His Left
41.
What is the name of Pocahontas' father?
a)
Chief Powhatan
b)
Chief Kocom
c)
Chief Kekata
d)
Chief Redfeather
42.
What city does Peter Pan begin in?
a)
New York City
b)
Paris
c)
London
d)
Moscow
43.
What time does the royal ball start in Cinderella?
a)
6 PM
b)
7 PM
c)
8 PM
d)
9 PM
44.
Match the following
a)
1.
US Banks buying bonds
b)
2.
The Federal Reserve buying bonds
c)
3.
borrowing more money
d)
4.
borrowing less money
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