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WorksheetsEcon Unit 4: Fiscal and Monetary Policy
Total questions: 11
Worksheet time: 6mins
Fiscal policy involves laws and actions that the government takes regarding:
interest rates and money supply
taxing and spending
foreign and domestic issues
trade exports and imports
Monetary policy involves: (check all that apply)
adjusting interest rates
adjusting the amount of money in circulation
adjusting income taxes
adjusting the federal budget
Who makes monetary policy decisions?
The Federal Reserve Bank
Congress
The President
The House of Representatives
What are the responsibilities of the Federal Reserve Bank? (Check all that apply)
Regulate other banks
Enact monetary policy
Serve as the central bank of the United States government
Issue loans to citizens and foreign companies
The federal government raises the majority of the revenue for its budget through:
taxation
loans
selling assets
investments
When the government runs out of revenue, how does it pay for things in the budget?
It raises income and capital gains taxes
It borrows money from individuals and other countries
It sells off assets like property and equipment
It shuts down until the next fiscal year starts
As your income increases, the rate of your taxes also increases. This is an example of what kind of taxation?
progressive
regressive
proportional
flat tax
This type of tax typically affects people with lower incomes more, usually through sales taxes and excise taxes.
progressive
regressive
proportional
flat tax
This type of tax is also know as the "flat tax," because everyone is taxed at the same rate no matter how high or low their income is.
progressive
regressive
proportional
excise
Which two areas make up the majority of the federal budget? (Check all that are correct)
social welfare programs
defense
police and fire fighters
infrastructure and roads
The members of the Board of Governors of the Federal Reserve Bank are:
appointed by the President and approved by the Senate
elected through the Electoral College
promoted through years of public service
appointed by the Finance Committees in the House and Senate
