Explore the intricacies of fiscal and monetary policies with this engaging quiz. Covering topics from contractionary fiscal policy to government borrowing, this quiz assesses understanding of economic tools used to influence national economies, enhancing learners' grasp of countercyclical strategies and financial governance.
Balanced budget
Budget deficit
Budget surplus
Discretionary budget
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Contractionary fiscal policy
Discretionary fiscal policy
Expansionary fiscal policy
Stabilizing fiscal policy
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A bank centrally located in a region
A bank that has many branches
A city's primary bank
A nation's main monetary authority
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Hire workers to create a new national park
Offer states federal funds for text book purchases
Double the excise tax on sales of gasoline
Lower corporate income tax rates
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Checks and money orders
Stocks and bonds
Securities and loans
Coins and paper money
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Investing in the stock market
Paying the growing interest on the national debt
Borrowing money it will have to repay in the future
Encouraging foreigners to invest in this country
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Changing the required reserve ratio from 5 % to 10%
Changing the required reserve ratio from 10% to 5%
Keeping the required reserve ratio stable at 5%
Keeping the required reserve ratio stable at 10%
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5 Federal Reserve District banks
12 Federal Reserve District banks
20 Federal Reserve District banks
50 Federal Reserve District banks, one for each state
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The national government and many private banks
The national government and only a few private banks the national government and only a few private banks
Only the national government
Only private banks
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Money banks use to cover their expenses
Money banks have to pay to the government to get permission to do business in the US
Money banks loan to customers
Money banks need to hold and not loan out
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Political issues
Rational expectations theory
Regional issues
Timing issues
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It often produces the opposite effect of what was intended.
Rational expectations lead individuals to take countermeasures against the policy
Its goal is to smooth out the peaks and troughs of the business cycle.
It produces sharp ups and downs in economic performance.
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Daily spending increases
Income increases
Interest rates decrease
Prices decrease
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Highway spending
Income tax
Military spending
Sales tax
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Automatic stabilizers
Contractionary fiscal policy
Expansionary fiscal policy
Rational expectations
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Begin construction of a new dam
Maintain the level of funding for highway repairs
Increase income tax rates
Reduce federal aid to states
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Daily spending decrease
Income increases
Interest rates increase
Prices decrease
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Backed by the confidence of the government
Backed by reserves of silver and/or gold held by the government
Money that exists only electronically in bank accounts
Money in the form of checks and money orders
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How changing the automatic stabilizers will affect the money supply.
How changing the required reserve ration will affect the money supply.
How changing discretionary fiscal policy will affect the money supply.
How much the money supply needs to be increased or decreasd.
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