Unit 4 Monetary & Fiscal Policy Vocabulary Quiz

Buying & selling government securities to change the supply of money

• federal funds rate

• monetary policy

• discount rate

• open market operations

regulations on the minimum amount of reserves that banks must hold against deposits

• Discount rate

• Federal Funds rate

• Reserve Requirements (RR)

• Open Market operations

A government policy for dealing with the budget (especially with taxation and borrowing)

• fiscal policy

• monetary policy

• discount rate

Money that has value because the government has ordered that it is an acceptable means to pay debts.

• commodity money

• fiat money

• representative money

• fiscal policy

What is an example of income?

• taxes

• expenditures

• expenses

• revenue

managing the economy by altering the supply of money and interest rates (Federal Reserve)

• federal reserve system

• monetary policy

• fiscal policy

• open market operations

Fees for the support of government required to be paid by people and businesses.

• Taxes

• Subsidies

• Fiscal Policy

• Interest

Exchange goods without involving money.

• commodity money

• fiat money

• barter

• currency

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

• Federal Funds Rate

• Fiscal Policy

• Federal Reserve System

• Fiat Money

monetary policy resulting in lower interest rates and greater access to credit; associated with an expansion of the money supply

• easy money policy

• tight money policy