Font size
WorksheetsMonetary Policy revision
Total questions: 15
Worksheet time: 15mins
Monetary Policy is the Federal Reserve Systems attempt to...
control the amount of money in circulation
control the Federal Government's debt
control state governments' spending
none of these answers are correct.
An expansionary policy means that the Fed is attempting to
increase the size of the nation's money supply
decrease the size of the nation's money supply
A contractionary policy means that the Fed is attempting to
increase the size of the nation's money supply
decrease the size of the nation's money supply
Which policy would help fight inflation?
Expansionary
Contractionary
During a recession, the Fed should use...
an expansionary policy
a contractionary policy
Quantitative Easing: Increasing the money supply and using these electronically created funds to buy government bonds or other securities.
Done by Central Bank
Done by commercial Bank
Done by Investment bank
None of the above
Quantitative easing is a form of
Expansionary fiscal policy
Expansionary monetary policy
Contractionary monetary policy
Contractionary fiscal policy
The aim of quantitative easing is to increase economic activity by
By selling bonds
By encouraging bank lending, investment and therefore help improve the rate of economic growth.
By decreasing the interest rate
By reducing tax rate
Therefore the aim of QE is to
Deflation
Disinflation
Decrease inflation
Increase inflation
The aim of quantitative easing is to:
Increase bank lending leading to higher investment. This should stimulate economic growth
Decrease bank lending leading to higher investment. This should stimulate economic growth
Increase bank lending leading to higher investment. This should decrease Unemployment rate
Decrease bank lending leading to higher investment. This should stimulate more employment
How do you feel about monetary policy? if you have any remaining questions write them below.
