Monetary Policy

Monetary Policy

11th Grade

13 Qs

quiz-placeholder

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Monetary Policy

Monetary Policy

Assessment

Quiz

Social Studies

11th Grade

Hard

Created by

Allan McConihe

Used 273+ times

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13 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The FED announces it will lower discount rates to banks. Why would the Fed take this action?

Fear economy is falling into a recession

Fear the economy is growing too rapidly

The Fed has a few of tools to control swings in the economy

all of these

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Fed issues an order to raise the reserve requirement on banks. What reason for this action?

Fear economy is falling into a recession

Fear the economy is growing too rapidly

The Fed has a few of tools to control swings in the economy

all of these

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Fed's Open Market Committee sells millions of bonds to private brokers. Reason for action?

Fear economy is falling into a recession

Fear the economy is growing too rapidly

The Fed has a few of tools to control swings in the economy

all of these

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A major function of the Fed is to:

pass laws to regulate the economy

lend money to state governments

manage the supply of currency and bank credit

issue United States savings bonds to the poor

all of these

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these is NOT an option for the Fed to consider when deciding monetary policy?

raise or lower reserve requirement

raise or lower discount rate

buy or sell U.S. Treasury Bonds

Taxing both individuals and business corporations alike

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If economy grows too rapidly, what is best option for the Fed consider for stabilizing economy?

increase reserve requirement

increase discount rate

sell U.S. Treasury Bonds

all of these

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which action could the Fed take to reduce the problem of recession?

cutting money spent on social programs

lowering discount rate

raising tariffs on foreign imports

reduce government spending

all of these

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