Government Chapter 20.2 (Monetary Policy): Question Preview (ID: 30995)


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What is used when the Government controls the money supply?
a) monetary policy b) fiscal policy c) foreign policy d) laissez-faire policy
What are the actions of the Fed involving stocks and bonds called?
a) open market operations b) discount rate c) reserve requirement d) fiscal policy
What is the amount of money that the Fed charges banks to borrow money from them called?
a) discount rate b) reserve requirement c) open market operations d) Gross Domestic Product
What is measured by the CPI?
a) inflation b) unemployment c) GDP d) discount rate
What can rise with a decrease in the money supply?
a) inflation b) unemployment c) GDP d) CPI
Who is the current head of the Board of Governors of the Federal Reserve System?
a) Janet Yellen b) Jay Nixon c) Ben Bernanke d) Alan Greenspan
If more money is added to the economy, then what is being used?
a) Expansionary policy b) Contractionary policy c) Distractionary policy d) Laissez-Faire Policy
If tax rates are raised, then which policy is being used?
a) Contractionary Fiscal Policy b) Expansionary Fiscal Policy c) Expansionary Monetary Policy d) Contractionary Monetary Policy
If tax rates are raised, then which policy is being used?
a) Contractionary Fiscal Policy b) Expansionary Fiscal Policy c) Expansionary Monetary Policy d) Contractionary Monetary Policy
If the Fed buys bonds, then what is being used?
a) Expansionary Monetary Policy b) Contractionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
If the Fed charges banks less for loans, then what is being used?
a) Expansionary Monetary Policy b) Contractionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
If the Fed makes banks keep more money in their vaults and out of circulation, then what is being used?
a) Contractionary Monetary Policy b) Expansionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
If the government increases the amount that it spends, then what is being used?
a) Expansionary Fiscal Policy b) Contractionary Fiscal Policy c) Contractionary Monetary Policy d) Expansionary Monetary Policy
If the Fed sells bonds, then what is being used
a) Contractionary Monetary Policy b) Expansionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
If the Fed makes banks keep less money in their vaults and out of circulation, then what is being used?
a) Expansionary Monetary Policy b) Contractionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
If the Fed charges banks more for loans, then what is being used?
a) Contractionary Monetary Policy b) Expansionary Monetary Policy c) Expansionary Fiscal Policy d) Contractionary Fiscal Policy
When more money is in circulation, then what happens to the prices of consumer goods?
a) they go up b) they go down c) they stay the same d) they plummet
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