This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Monetary And Fiscal Policy > Monetary And Fiscal Policy – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Monetary And Fiscal Policy Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a function of our money A) Buys stuff. B) Holds value. C) Gives value to objects. D) Is in limited supply. Show Answer Correct Answer: D) Is in limited supply. 2. Interest Rate is the fee that A) The member bank must pay the district bank for a loan. B) You and I must pay our bank for a loan. C) The district bank pays the national bank for a loan. D) The FED pays FOMC for services. Show Answer Correct Answer: B) You and I must pay our bank for a loan. 3. Which of the following best defines "estate tax" ? A) Tax on donation of money or wealth. B) Tax on people's earnings. C) Tax on the manufacture or sale of certain items. D) Tax on the transfer of property when someone dies. Show Answer Correct Answer: D) Tax on the transfer of property when someone dies. 4. Someone who works part-time but wants a full-time job is considered A) A discouraged worker. B) Unhappy. C) Underemployed. D) Overemployed. Show Answer Correct Answer: C) Underemployed. 5. Which of the following is public service? A) National Defense. B) Businesses. C) Education. D) Roads and highways. Show Answer Correct Answer: B) Businesses. 6. Unemployment caused when a person resigns from their job to start looking for a higher paying job that better suits their skills. A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: C) Frictional. 7. An erratic monetary policy A) Stagflation. B) Stop and go, on and off monetary policy. C) Expansionary monetary policy. D) Fiscal policy. Show Answer Correct Answer: B) Stop and go, on and off monetary policy. 8. A government taxes the production of cars.What is likely to decrease? A) The cost of supplying cars. B) The price of cars. C) The revenue for the government. D) The supply of cars at every price. Show Answer Correct Answer: D) The supply of cars at every price. 9. To fight a recession the central bank will probably ..... government securities on the open market and ..... the discount rate. A) Sell, raise. B) Sell, lower. C) Buy, raise. D) Buy, lower. Show Answer Correct Answer: D) Buy, lower. 10. The fact that money can be saved for future use or deposited in a bank is which function of money? A) Medium of Exchange. B) Store of Value. C) Unit of Account. D) Acceptability. Show Answer Correct Answer: B) Store of Value. 11. The Federal Reserve System monitors and regulates the US ..... and ..... system. A) Tax spending. B) Trade commerce. C) Monetary banking. D) Regulation investment. Show Answer Correct Answer: C) Monetary banking. 12. What is the largest chunk of government spending? A) Defense. B) Healthcare for the poor. C) Education. D) Social Security. Show Answer Correct Answer: B) Healthcare for the poor. 13. When we need to slow economic growth, we need A) Expansionary Fiscal and Monetary Policy. B) Contractionary Fiscal and Monetary Policy. Show Answer Correct Answer: B) Contractionary Fiscal and Monetary Policy. 14. Goal of fiscal policy is A) Keep unemployment stable. B) Promote full employment. C) Keep prices stable. D) Promote full employment and price stability. Show Answer Correct Answer: D) Promote full employment and price stability. 15. The actions taken by a central bank to influence the availability and cost of money and credit to help promote national economic goals A) Fiscal Policy. B) Tax Policy. C) Monetary Policy. D) Welfare Policy. Show Answer Correct Answer: C) Monetary Policy. 16. Government gilt sales will likely cause A) Bond yields to rise. B) National Debt to fall. C) Interest rates to fall. D) Crowding in. Show Answer Correct Answer: A) Bond yields to rise. 17. What is the largest chunk of government spending after defense? A) Infrastructure development. B) Social Security. C) Department of Education. D) Healthcare for the poor (Medicaid). Show Answer Correct Answer: D) Healthcare for the poor (Medicaid). 18. How does the Federal Reserve buying bonds affect the size of the money supply? A) It increases the money supply. B) It decreases the money supply. C) It keeps the money supply the same size. D) None of above. Show Answer Correct Answer: A) It increases the money supply. 19. Is it a requirement for the federal government to balance its budget each year? A) Yes. B) No. Show Answer Correct Answer: B) No. 20. The economy is experiencing recession. What should the President and Congress do? A) Decrease taxes. B) Buy bonds. C) Decrease interest rates. D) Decrease spending. Show Answer Correct Answer: A) Decrease taxes. ← 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 5Monetary And Fiscal Policy Quiz 6Monetary And Fiscal Policy Quiz 7Monetary And Fiscal Policy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books