American Government OST Review Part 1

Front

The Federal Reserve uses which monetary policy or policies to encourage economic growth? Lower discount rate, Raise discount rate, Reduce reserve requirement

Back

Both A and D

Front

The Federal Reserve uses which monetary policy or policies to slow down economic growth? Options: Raise the reserve requirement, Lower discount rate, Reduce reserve requirement, Both A and B

Back

Raise the reserve requirement

Front

What are the general responsibilities of citizens? Options: Paying taxes, Respecting the rule of law, Voting in elections, All of the above

Back

All of the above

Front

The 16th, 17th, 18th and 19th amendments were passed during what era?

Back

Progressive Era

Front

What are the basic principles of the Constitution?

Back

Popular Sovereignty, Limited Government, Federalism, Separation of Powers, Checks and Balances

Front

Money loses its value when it: It becomes too plentiful, becomes too portable, is divisible, is durable

Back

becomes too plentiful

Front

Which of the following is a monetary policy action used to combat a recession? Options: cutting taxes, increasing the money supply, decreasing the money supply, raising taxes

Back

increasing the money supply

Front

The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT: decreasing the discount rate., increasing the reserve requirement., selling securities on the open market., making banks hold a reserve for all types of deposits.

Back

decreasing the discount rate.

Front

If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would:

Back

cause interest rates to decrease because low interest rates encourage business growth and expansion.

Front

If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? (monetary / fiscal)

Back

decrease the interest rate / increase government spending