Monetary And Fiscal Policy Quiz 27 (12 MCQs)

Quiz Instructions

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1. Who makes sure bank customers do not lose their money if a bank fails

Correct Answer: B) FDIC.

2. What can the government do to slow the economy in order to reduce inflation?

Correct Answer: B) Raise taxes.

3. Which of the following can result in price instability

Correct Answer: D) All of these.

4. What will the Federal Reserve Board do if retail sales a way down from last year and so are housing sales

Correct Answer: C) Decrease the discount rate.

5. Which of the following best describes the goal of Monetary Policy?

Correct Answer: C) Controlling the money supply.

6. Which team scored the most points in one game?

Correct Answer: A) Georgia Tech.

7. The Fed is .....

Correct Answer: B) Independent of the government.

8. When does the Fed impose an easy money policy

Correct Answer: B) During a contraction.

9. In order to slow the economy, the FED may ..... the reserve requirements and there will be less money to loan out to people.

Correct Answer: A) Increase.

10. Which of the following is NOT one of the functions of money?

Correct Answer: B) Uniform.

11. The Fed deciding to buy or sell government bonds are known as

Correct Answer: C) Open Market Operations.

12. Monetary Policies are based on this

Correct Answer: D) Reserve system.