Economic Policies Quiz

Which of the following describes fiscal policy?

• The use of taxing and spending to influence the national economy

• Requiring personal finance classes so people are more fiscally responsible

• Manipulating the availability and value of money to influence the national economy

• Increasing prices force people to spend more money

Monetary policy is...

• The use of taxing and spending to influence the national economy

• Requiring personal finance classes so people are more fiscally responsible

• Manipulating the availability and value of money to influence the national economy

• Increasing prices force people to spend more money

In the United States, what government entity is responsible for monetary policy?

• Congress

• The US Mint

• The Bureau of Engraving and Printing

• The Federal Reserve

One major monetary policy tool is the discount rate. Which of the following best describes the discount rate?

• A lower rate that only people with a magical 857 credit score qualify for

• The interest rate the Federal Reserve charges commercial banks

• The rate at which people ask commercial banks for discounts on the interest rates on their loans

• The percentage of a bank’s deposits that they must keep cash in hand

The reserve requirement is a monetary policy tool. Which of the following best describes the reserve requirement?

• A lower rate that only people with a magical 857 credit score qualify for

• The interest rate the Federal Reserve charges commercial banks

• The rate at which people ask commercial banks for discounts on the interest rates on their loans

• The percentage of a bank’s deposits that they must keep cash in hand

Open Market Operations is a way that the Federal Reserve can speed up or slow down the economy. Which of the following best describes open market operations?

• It’s when the supermarkets have windows that open right onto the street

• Buying and selling stocks and bonds

• Making sure that all information about financial markets is open and free

• College kids in marketing classes have to open a business

What economic philosophy is associated with John Maynard Keynes?

• Capitalism

• Communism

• Supply-side economics

• Demand-side economics

What economic philosophy is associated with Milton Friedman?

• Capitalism
• Communism

• Supply-side economics

• Demand-side economics

What economic philosophy is associated with Adam Smith?

• Capitalism

• Communism

• Supply-side economics

• Demand-side economics

What economic philosophy is associated with Karl Marx?

• Capitalism

• Communism

• Supply-side economics

• Demand-side economics