Fiscal and Monetary Policy
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14 questions
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- Q1The control of money supply to influence cost and availability of credit is known asfiscal policyfree market policyannual policymonetary policy30s
- Q2What entity is responsible for managing the money supply?BanksThe Federal ReserveThe PresidentCongress30s
- Q3What is fiscal policy?The expansion or contraction of the money supply.Government's attempt to stabilize the economy.President's rules and regulations of banks.President's role in the economy.30s
- Q4What is not a role of the Federal Reserve?Establish monetary policy.Operate payment systems.Connect with overseas banks.Regulate and supervise banks.30s
- Q5Which policy believes cutting taxes and putting more money into the hands of the people will lead to a growing economy and less unemployment?Monetary PolicyDemand-Side PoliciesUnemployment PolicySupply-Side Policies30s
- Q6What is the Open Market Operations?Monetary tool that requires the Fed to keep so much money on hand.Monetary tool that includes buy and selling of government securities.The minimum deposit that is left with a stockbroker.Fiscal tool that includes buy and selling of government securities.30s
- Q7What is a discount rate?Interest rates the Fed charges banks for loans.None of the AboveRate at which government securities are bought.Interest rates banks charge the Fed in order to keep the Fed in check.30s
- Q8How many reserve banks are there in the U.S.?78125030s
- Q9Which group within the Fed sets monetary policy?The 12 Reserve BanksFederal Open Market Committee (FOMC)Board of CommissionersBank Presidents30s
- Q10If there are lower interest rates (for discount rates) what happens to borrowing?Borrowing is not affected.Borrowing increases due to lower interest rates.Borrowing decreases due to lower interest rates from the Fed.Borrowing is no longer an option when there are low interest rates.30s
- Q11What is the Fed's relationship with the government?The Fed is independent of the government.The Fed is inferior to the government.The Fed is dependent of the government.The Fed is the plumbing of the government.30s
- Q12The total amount borrowed from investors to finance the government's deficit spending is called the...revenue of the U.S.national debt.deficit expenditures.world wide debt.30s
- Q13Spending in excess of revenue collected is called ...Fiscal SpendingMonetary SpendingDeficit SpendingDebt30s
- Q14The current debt of the U.S. is about . . .15 billion19 trillion40 thousand20 million30s