Question 1

What is used when the Government controls the money supply?

Accepted Answer

monetary policy

Answer

laissez-faire policy

Answer

fiscal policy

Answer

foreign policy

Question 2

What are the actions of the Fed involving stocks and bonds called?

Accepted Answer

open market operations

Answer

discount rate

Answer

fiscal policy

Answer

reserve requirement

Question 3

What is the amount of money that the Fed charges banks to borrow money from them called?

Accepted Answer

discount rate

Answer

open market operations

Answer

reserve requirement

Answer

Gross Domestic Product

Question 4

What is measured by the CPI?

Accepted Answer

inflation

Answer

GDP

Answer

unemployment

Answer

discount rate

Question 5

What can rise with a decrease in the money supply?

Accepted Answer

unemployment

Answer

inflation

Answer

GDP

Answer

CPI

Question 6

Who is the current head of the Board of Governors of the Federal Reserve System?

Accepted Answer

Janet Yellen

Answer

Ben Bernanke

Answer

Alan Greenspan

Answer

Jay Nixon

Question 7

If more money is added to the economy, then what is being used?

Accepted Answer

Expansionary policy

Answer

Laissez-Faire Policy

Answer

Contractionary policy

Answer

Distractionary policy

Question 8

If tax rates are raised, then which policy is being used?

Accepted Answer

Contractionary Fiscal Policy

Answer

Expansionary Fiscal Policy

Answer

Expansionary Monetary Policy

Answer

Contractionary Monetary Policy

Question 9

If the Fed buys bonds, then what is being used?

Accepted Answer

Expansionary Monetary Policy

Answer

Expansionary Fiscal Policy

Answer

Contractionary Monetary Policy

Answer

Contractionary Fiscal Policy

Question 10

If the Fed charges banks less for loans, then what is being used?

Accepted Answer

Expansionary Monetary Policy

Answer

Contractionary Fiscal Policy

Answer

Contractionary Monetary Policy

Answer

Expansionary Fiscal Policy

Question 11

If the Fed makes banks keep more money in their vaults and out of circulation, then what is being used?

Accepted Answer

Contractionary Monetary Policy

Answer

Expansionary Fiscal Policy

Answer

Expansionary Monetary Policy

Answer

Contractionary Fiscal Policy

Question 12

If the government increases the amount that it spends, then what is being used?

Accepted Answer

Expansionary Fiscal Policy

Answer

Contractionary Monetary Policy

Answer

Contractionary Fiscal Policy

Answer

Expansionary Monetary Policy

Question 13

If the Fed sells bonds, then what is being used

Accepted Answer

Contractionary Monetary Policy

Answer

Expansionary Fiscal Policy

Answer

Contractionary Fiscal Policy

Answer

Expansionary Monetary Policy

Question 14

If the Fed makes banks keep less money in their vaults and out of circulation, then what is being used?

Accepted Answer

Expansionary Monetary Policy

Answer

Contractionary Monetary Policy

Answer

Contractionary Fiscal Policy

Answer

Expansionary Fiscal Policy

Question 15

If the Fed charges banks more for loans, then what is being used?

Accepted Answer

Contractionary Monetary Policy

Answer

Expansionary Monetary Policy

Answer

Contractionary Fiscal Policy

Answer

Expansionary Fiscal Policy

Question 16

When more money is in circulation, then what happens to the prices of consumer goods?

Accepted Answer

they go up

Answer

they plummet

Answer

they go down

Answer

they stay the same

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