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Monetary Policy II

Monetary Policy II

Assessment

Presentation

Social Studies

12th Grade

Medium

Created by

Kendrick Broadus

Used 8+ times

FREE Resource

82 Slides • 28 Questions

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Monetary Policy II

by Kendrick Broadus

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Multiple Choice

Who is in charge of Monetary Policy

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The Government

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The Federal Reserve System

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The states

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The Department of the Treasury

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Multiple Choice

Which one is not part of the Federal Reserve's dual mandate?

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Control of the money supply

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Maximum employment

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Price stability

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Multiple Choice

The goals of monetary policy do NOT include the promotion of _____

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Moderate long-term interest rates

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Stable prices

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Maximum employment

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High government spending.

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Multiple Choice

4.Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls the supply of money, availability of bank credit and cost of money that is the rate of interest:

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a) Central Bank (RBI)

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b) SBI

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c) IBA

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d) None of These

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Multiple Choice

Question image

Which of the following is NOT one of the goals of the Federal Reserve system?

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Full employment (Less than 5%)

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Low tax rates

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Long-lasting economic growth

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Stable prices for good and services

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Multiple Choice

Question image

what is the purpose of Monetary Policy?

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contribute to economic growth and stability

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keep rich people from getting too rich

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Functions like Fiscal Policy

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give Congress and the political parties more control of the economy

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Scenario 1

This is a graph of the unemployment rate in Canada over the past 12 months. Take note of both the trend and the current unemployment rate.

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Multiple Choice

Which economic goal does this data relate to?

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Full employment

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Price stability

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Economic growth

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Poll

Which monetary policy goal do you think is MOST warranted in this scenario?

Increase monetary growth

Decrease monetary growth

Maintain the status quo

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Open Ended

Why did you choose the policy goal you chose?

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Multiple Choice

For this question, imagine everyone agrees we need to increase monetary growth, which option below would BEST achieve that goal?

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Selling bonds in open market operations

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Lowering the discount rate

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Increasing the reserve requirement

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Increasing the discount rate

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Scenario 2

This is a graph of the GDP Annual Growth Rate of Germany over the past 5 years. Make note of the current growth rate and the trend.

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Multiple Choice

Which economic goal does this data relate to?

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Full employment

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Price stability

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Economic growth

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Poll

Which monetary policy goal do you think is MOST warranted in this scenario?

Increase monetary growth

Decrease monetary growth

Maintain the status quo

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Open Ended

Why did you choose the policy goal you chose?

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Multiple Choice

For this question, imagine everyone agrees we need to increase monetary growth, which option below would BEST achieve that goal?

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Buying bonds in open market operations

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Selling bonds in open market operations

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Increasing the reserve requirement

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Increasing the discount rate

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Multiple Choice

An expansionary policy means that the Fed is attempting to

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increase the size of the nation's money supply

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decrease the size of the nation's money supply

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Multiple Choice

A contractionary policy means that the Fed is attempting to

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increase the size of the nation's money supply

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decrease the size of the nation's money supply

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Multiple Choice

Which policy would help fight inflation?

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Expansionary

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Contractionary

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Multiple Choice

Which policy would help fight unemployment?

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Expansionary

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Contractionary

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Multiple Choice

During a recession, the Fed should use...

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an expansionary policy

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a contractionary policy

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Multiple Choice

During an expansion, the Fed should use...

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an expansionary policy

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a contractionary policy

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Multiple Choice

What is the end result of Contractionary Monetary Policy

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Higher Inflation

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Lower Inflation

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Inflation Targeting

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None of the above

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Multiple Choice

How is contractionary monetary policy expected to influence interest rates?

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Raise them

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Lower them

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Multiple Choice

How is expansionary monetary expected to influence the unemployment rate?

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Increase it

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Decrease it

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Multiple Select

When Interest Rates Are Lowered ....

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Lower interest rates induce more investment, so 𝚫I is positive.

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Higher interest rates deter investors, so 𝚫I is negative.

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This causes aggregate demand to shift to the right.

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This causes aggregate demand to shift to the left.

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Multiple Choice

Which Fed action can shift the aggregate demand curve to the left?

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Lowering the federal funds rate

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Lowering income taxes

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Lowering reserve requirements

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Raising the discount rate

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Raising government spending on national defense

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Multiple Choice

Suppose the government increases its purchases by $16 billion. If the multiplier effect exceeds the crowding­ out effect, then

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the aggregate supply curve shifts to the right by more than $16 billion

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the aggregate demand curve shifts to the left by more than $16 billion.

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the aggregate demand curve shifts to the right by more than $16 billion.

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the aggregate supply curve shifts to the left by more than $16 billion.

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Multiple Choice

The goals of monetary policy do NOT include the promotion of _____

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Moderate long-term interest rates

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Stable prices

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Maximum employment

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High government spending.

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Multiple Choice

Question image

Which of the following statements is true?

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Contractionary monetary policy would increase government revenue & slow down the economy.

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Contractionary fiscal policy would decrease the reserve requirement & slow down the economy.

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Contractionary fiscal policy would lead to a decrease in national debt.

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Contractionary monetary policy leads to a budget deficit.

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Monetary Policy II

by Kendrick Broadus

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