U5 Review

Question 1

When you buy a soda at the corner store, the tax you pay is an example of a/an...

Accepted Answer

Excise Tax

Question 2

Which of the following is discretionary spending?

Accepted Answer

Defense

Question 3

Entitlement Programs are...

Accepted Answer

Mandatory Spending

Question 4

A tax on inheritance

Accepted Answer

Estate Tax

Question 5

If the Fed reduces reserve requirements, what will happen to the money supply?

Accepted Answer

It will increase

Question 6

Revenues equal expenditures in a...

Accepted Answer

Balanced Budget

Question 7

Which characteristic of a good tax could be defined as "fair?"

Accepted Answer

Equity

Question 8

Congress and the President's use of taxes and spending to influence the economy

Accepted Answer

Fiscal Policy

Question 9

Which of these is a regressive tax?

Accepted Answer

Sales Taxes

Question 10

Which of these is Tight Money (contractionary monetary) policy?

Accepted Answer

Raising the Discount Rate

Question 11

The LAST step in the budget process is usually...

Accepted Answer

The President signing the budget

Question 12

The Federal Insurance Contribution Act programs consist of

Accepted Answer

Social Security and Medicare

Question 13

If taxes remain the same percentage at all income levels the tax structure is

Accepted Answer

Proportional

Question 14

How many Federal Reserve Districts are there?

Accepted Answer

12

Question 15

The interest rate the banks charge their best customers

Accepted Answer

Prime Rate

Question 16

How many members of the Board of Governors are there?

Accepted Answer

7

Question 17

When interest rates are lowered, demand for loans will

Accepted Answer

Increase

Question 18

How many members are on the FOMC?

Accepted Answer

12

Question 19

Which of the following is an example of expansionary fiscal policy?

Accepted Answer

Raising Spending

Question 20

The Fed could do any of the following to influence the money supply EXCEPT...

Accepted Answer

Change tax rates

Question 21

The total amount of money owed by the Federal Government

Accepted Answer

National Debt

Question 22

Which of these is an example of an Entitlement program?

Accepted Answer

Medicare

Question 23

The interest rate banks charge each other

Accepted Answer

Federal Funds Rate

Question 24

Which of the following is NOT tax deductible

Accepted Answer

Common household expenses

Question 25

What is the goal of expansionary fiscal policy?

Accepted Answer

To increase GDP

Question 26

Government revenues exceed expenditures in a...

Accepted Answer

Budget Surplus

U5 Review

Questions 26

U5 Review

Questions 26