This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Monetary And Fiscal Policy > Monetary And Fiscal Policy – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Monetary And Fiscal Policy Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which statement BEST describes monetary policy? A) Monetary policy reflects the Federal Reserve's authority to change tax rates. B) Monetary policy refers to the Federal Reserve's authority to create a budget deficit. C) Monetary policy reflects the Federal Reserve's authority to change the money supply. D) Monetary policy refers to the Federal Reserve's authority to increase government spending. Show Answer Correct Answer: C) Monetary policy reflects the Federal Reserve's authority to change the money supply. 2. Maximum employment A) Job markets performing at their best possible sustainable levels over the long-term. B) Everyone has a job. C) All assets a company owns. D) Job market limiting employment. Show Answer Correct Answer: A) Job markets performing at their best possible sustainable levels over the long-term. 3. Who is responsible for fiscal policy? A) The president. B) The House of Representatives. C) The Senate. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. What is the major lever of broad-based macroeconomic policy in the United States? A) Monetary policy. B) Fiscal policy. C) Supply side economics. D) Interest rate manipulation. Show Answer Correct Answer: A) Monetary policy. 5. Monetary policy and fiscal policy have ..... goals and use ..... means to attain those goals. A) The same, the same. B) Different, different. C) The same, different. D) Different, the same. Show Answer Correct Answer: C) The same, different. 6. Too much money in the economy results in ..... A) Inflation. B) Price reductions. C) Recessions. D) Deflation. Show Answer Correct Answer: A) Inflation. 7. The Current Chairman of the Board of Governors for the Federal Reserve is A) Ben Bernake. B) William J Clinton. C) Jerome Powell. D) Janet Yellen. Show Answer Correct Answer: C) Jerome Powell. 8. Regulates banks and manages the nation's money supply. A) President and Congress. B) Federal Reserve System. C) CEO Office. D) Government Administration System. Show Answer Correct Answer: B) Federal Reserve System. 9. During a period of recession the best action would be A) Increase the money supply and lower interest rates. B) Decrease govt. spending and decrease taxes. C) Decrease the money supply and increase govt. spending. D) Increase interest rates and decrease the money supply. Show Answer Correct Answer: A) Increase the money supply and lower interest rates. 10. Deadline to file taxes is A) April 15th. B) April 5th. C) May 15th. D) January 1st. Show Answer Correct Answer: A) April 15th. 11. Which is NOT a characteristic of expansionary fiscal policy? A) Increasing road construction projects. B) Decreasing FICA tax. C) Deregulating the mortgage industry. D) Buying bonds. Show Answer Correct Answer: D) Buying bonds. 12. Are used to determine the overall heath of the economy A) Gross domestic product. B) Consumer price index. C) Economic indicators. D) None of these. Show Answer Correct Answer: C) Economic indicators. 13. The manipulation of the money supply in order to influence the cost and the availability of credit is A) Banking Policy. B) Fiscal Policy. C) Monetary Policy. D) Spending Policy. Show Answer Correct Answer: C) Monetary Policy. 14. The federal reserve decreases interest rates to encourage consumer spending during a recession. The government has implemented (a) A) A Expansionary Monetary Policy. B) Contractionary Monetary Policy. Show Answer Correct Answer: A) A Expansionary Monetary Policy. 15. The President and Congress have the role of passing ..... policy. A) Fiscal. B) Monetary. Show Answer Correct Answer: A) Fiscal. 16. The lower the interest rate, the more banks will do what? A) Borrow money. B) Print money. C) Increase the interest rate. D) Fire the bankers. Show Answer Correct Answer: A) Borrow money. 17. Automatic fiscal stabilisers include all of the following except A) Job Seekers' Allowance. B) Inheritance Tax. C) Progressive income tax. D) Income Support payments. Show Answer Correct Answer: B) Inheritance Tax. 18. According to expansionary fiscal policy, if the government wants to stimulate the economy to fuel economic growth, the government will A) Decrease government spending. B) Increase taxes. C) Increase government spending. D) None of the above. Show Answer Correct Answer: C) Increase government spending. 19. Which policy is the following statement associated with? " ..... Officials decided to announce they would keep interest rates near zero until the unemployment rate drops to 6.5%." A) Monetary Policy. B) Fiscal Policy. C) Both Monetary and Fiscal Policy. D) None of above. Show Answer Correct Answer: A) Monetary Policy. 20. The amount of money the US government borrows to fund the national budget is the annual ..... A) Deficit. B) Debt. C) Revenue. D) Receipt. Show Answer Correct Answer: A) Deficit. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesMonetary And Fiscal Policy Quiz 1Monetary And Fiscal Policy Quiz 2Monetary And Fiscal Policy Quiz 3Monetary And Fiscal Policy Quiz 4Monetary And Fiscal Policy Quiz 6Monetary And Fiscal Policy Quiz 7Monetary And Fiscal Policy Quiz 8Monetary And Fiscal Policy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books