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Fiscal and Monetary Policy Flashcards | StudBud
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Fiscal and Monetary Policy
Fiscal and Monetary Policy
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Fiscal and Monetary Policy
Flashcards
40 cards
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Questions
40
Answers
1
Education is funded by -
Income Tax
Property Taxes
Sales Tax
Excise Taxes
2
Which of the following is a state tax?
Personal Income Tax
FICA
Property Tax
Corporate Income Tax
3
The government has cut taxes and increased government spending. The Fed should -
Take no action
Increase the Discount Rate
Buy Bonds
Increase the Reserve Requirement
4
Which branch of the Fed is in charge of the buying and selling of US bonds/treasuries?
FOMC
Board of Govenors
District Bank Chairs
District Banks
5
The FICA tax is used to pay for -
Only Social Security
Education
Medicare and Social Security
Only Medicare
6
What is the #1 tool of the Fed
Reserve Requirement
Government spending
Discount Rate
Open Market operations
7
What type of money are credit cards?
M2
None
Both
M1
8
How should the Fed fight a recession?
Lower the Discount Rate
Increase government spending
Buy Bonds
Increase the Reserve Requirement
9
Type of banking system found in the United States?
Guaranteed Reserve
Federal Deposit Insurance
Wild Cat Banking
Fractional Reserve
10
Which of the following Fiscal and Monetary policy options do not go together?
Raise taxes; buy bonds
Decrease the DR; Increase gov't spending
Buy Bonds; Increase gov't spending
Decrease gov't spending; Increase RR
11
Members of the Board of Governors serve 14 years terms so that -
Limit their power
Ensure that members act in the interest of the country
One president can't name too many.
We have economic continuity
12
This would be used to increase employment
budget deficit
contractionary fiscal policy
expansionary monetary policy
proportional income taxes
13
How many federal reserve districts are there?
11
10
12
50
14
Which of the following is an example of Monetary policy?
Increase in Reserve Requirement
Increase in Government Spending
Decrease in Taxes
Increase in Taxes
15
In the US, the income tax structure is a -
regressive tax
proportional tax
flat tax
progressive tax
16
Who is the current chair of the fed?
Jerome Powell
Paul Vockler
Janet Yellen
Ben Bernacke
17
If there is inflation, what should the Fed do?
Increase the Reserve Requirement
Buy Bonds
Decrease the discount rate
Raise taxes
18
A follower of supply-side economics is most likely to cut taxes for -
Government
Middle class
The poor
The rich
19
Which of the following is associated with demand-side economics?
Trickle down
Milton Friedman
Reaganomics
John Maynard Keynes
20
Monetary Policy is set by?
House of Representatives
President
Federal Reserve
Senate
21
Which is not a tool of the fed?
open market operations
Federal funds rate
discount rate
reserve requirement
22
Easy monetary policy would be most likely during each phase of the business cycle, except -
Trough
Contraction
Peak
Depression
23
Which of the following is not a tool of fiscal policy?
Open market operations
Taxes
Reserve requirement
Government spending
24
John Maynard Keynes is associated with ____; while Reagan is associated with ____.
Supply Side; Demand Side
Demand Side; Supply Side
Laffer Curve
Supply/Demand Curve
25
When we use money to measure the quality or value of goods.
Standard of value
Store of value
Unit of account
Medium of exchange
26
An item that can be taxed is referred to as -
Tax deduction
Tax incentive
Tax base
Tax rate
27
Spending > Revenue
regressive budget
budget deficit
budget surplus
flat budget
28
The national debt is
$200B
Caused by a budget surplus
When spending = revenue
Accumlation of budget deficits
29
If the Fed wanted to Increase the money supply, which of the following show they not do?
Sell Bonds
Decrease the Reserve Requirement
Buy Bonds
Increase the Discount Rate
30
When the fed buys bonds on the open market, it is
stagflation
expansionary
fiscal policy
contractionary
31
Which of the following is true about automatic stabilizers?
They require no action by congress.
They are only expansionary
Stocks and bonds are examples
Taxes and unemployment are examples
32
Which of the following is the largest source of federal government tax revenue?
income tax
social security tax
excise tax
property tax
33
The sales tax is an example of
regressive tax
proportional tax
flat tax
progressive tax
34
The largest federal mandatory expenditure is -
national defense
education
Medicare only
FICA
35
What is the most common use of money?
Medium of exchange
Store of Value
Unit of Account
Standard of Value
36
Taxes on cigarettes, alcohol, and tolls on highways are all examples of what type of tax?
progressive
regressive
proportional
flat
37
During an inflationary gap the fed should not
Decrease the reserve requirement
decrease the discount rate
sell securities
Buy bonds
38
The interest rate that the Fed charges banks for overnight emergency loans is -
Interest rate
Federal Funds Rate
Discount rate
Prime Rate
39
During a recessionary gap, the government should not
Sell securities
increase spending
Buy bonds
Raise taxes
40
Budget surpluses are when
Spending = revenue
Revenue < Spending
Spending < Revenue
Spending > Revenue
