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Fiscal and Monetary Policy

Quiz by Roettger

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14 questions
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  • Q1
    The control of money supply to influence cost and availability of credit is known as
    fiscal policy
    free market policy
    annual policy
    monetary policy
    30s
  • Q2
    What entity is responsible for managing the money supply?
    Banks
    The Federal Reserve
    The President
    Congress
    30s
  • Q3
    What 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
  • Q4
    What is not a role of the Federal Reserve?
    Establish monetary policy.
    Operate payment systems.
    Connect with overseas banks.
    Regulate and supervise banks.
    30s
  • Q5
    Which policy believes cutting taxes and putting more money into the hands of the people will lead to a growing economy and less unemployment?
    Monetary Policy
    Demand-Side Policies
    Unemployment Policy
    Supply-Side Policies
    30s
  • Q6
    What 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
  • Q7
    What is a discount rate?
    Interest rates the Fed charges banks for loans.
    None of the Above
    Rate at which government securities are bought.
    Interest rates banks charge the Fed in order to keep the Fed in check.
    30s
  • Q8
    How many reserve banks are there in the U.S.?
    7
    8
    12
    50
    30s
  • Q9
    Which group within the Fed sets monetary policy?
    The 12 Reserve Banks
    Federal Open Market Committee (FOMC)
    Board of Commissioners
    Bank Presidents
    30s
  • Q10
    If 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
  • Q11
    What 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
  • Q12
    The 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
  • Q13
    Spending in excess of revenue collected is called ...
    Fiscal Spending
    Monetary Spending
    Deficit Spending
    Debt
    30s
  • Q14
    The current debt of the U.S. is about . . .
    15 billion
    19 trillion
    40 thousand
    20 million
    30s

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