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Unit 5: Fiscal and Monetary Policy Flashcards | StudBud
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Unit 5: Fiscal and Monetary Policy
Unit 5: Fiscal and Monetary Policy
50 terms
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StudBud Administration
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208 plays
#moneyandbanking #fonty #economics #monetarypolicy #fiscalpolicy
Flashcards
50 cards
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Questions
50
Answers
1
Why do banks sometimes need loans from the FED?
all of the above
financial disasters
seasonal factors
natural disasters
2
Lincoln faces which way on the penny?
right
left
3
This tax takes the same amount from everyone...
proportional
supply-side
regressive
progressive
4
When the FED is working as the governments bank it...
provides checking account for the department of treasury
accepts deposits of government funds
all of the above
records government deposits and withdrawals
5
"Legal Tender" added to paper by the government makes it...
fiat money
near money
representative money
commodity money
6
Easy money policy fights unemployment and cause inflation.
True
False
7
Commercial banks...
transfer money
accept deposits
make loans
all of the above
8
Why would the FED charge lower interest rates?
banks can charge their customers lower interest rates
it makes more money available to banks
all of the above
banks pay less interest on loans
9
The FED was created in...
1913
1932
1915
1923
10
Easy money policy does...
raise the discount rate
cut taxes and increase spending
lower the discount rate
raise taxes and cut spending
11
Who controls monetary policy?
restrictive Fiscal policy
easy money
The Congress (gov)
the Federal Reserve
12
Money that can be transferred from person to person is...
durability
acceptability
portability
divisibility
13
Which woman appeared on paper money?
Janet Yellen
Mary Todd Lincoln
Rosa Parks
Martha Washington
14
Expansionary Fiscal Policy is...
raise taxes and cut government spending
buy bonds and stocks
sell bonds and stocks
cut taxes and increase government spending
15
Credit Unions generally pay their customers higher interest rates.
False
True
16
If economic growth expands the tax base...
then people pay less in taxes
then the economy shrinks
then people pay more in taxes
17
Supply-sided economists...
government should take a hands off approach to the economy
dismantle the central bank
government should take a hands on approach to the economy
the FOMC is not important
18
The more you earn the more you pay...
supply-side
progressive
regressive
proportional
19
What is another name for a government security?
government bonds
government stocks
government stocks and bonds
FOMC
20
Who created the Federal Reserve Act?
Hoover
Greenspan
Wilson
Roosevelt
21
The prime rate is the highest possible interest rate that banks charge their customers
False
True
22
A Sin Tax is also a...
property tax
excise tax
sales tax
income tax
23
Spending and taxation are two tools of...
Money Policy
Federal Policy
Monetary Policy
Fiscal Policy
24
Which act made the FDIC permanent?
Banking act of 1933
Banking act of 1935
The Gold Reserve act
Federal Reserve Act
25
Who controls fiscal policy?
Restrictive Fiscal Policy
The Congress (gov)
the Federal Reserve
Easy money
26
Liquid assets are...
stock portfolio
saving accounts
money market accounts
demand deposit accounts
27
To expand the money supply the Congress can cut taxes
True
False
28
When people use money to clarify opportunity cost, they are using money as a standard of value
True
False
29
What was the original purpose of the Federal Reserve?
All of the above
provide government with enough money to finance WWI
stop the financial panic of 1907
control credit in the 1930's
30
If $100 were our smallest bill, what characteristic would it not meet...
durability
acceptability
divisibility
portability
31
Tight money policy does...
raises taxes and cut spending
cut taxes and increase spending
lower the discount rate
raise the discount rate
32
What is a reserve requirement?
percentage of money banks must hold as cash
credit that is set aside
percentage of money banks lend out
pyramid reserves
33
Money supply is...
all the money printed
all the money held by banks
all the money in circulation
the money in checking accounts
34
Which tax structure caused the French Revolution?
Proportional
Progressive
Supply-side
Regressive
35
Governors on the FED serve...
14 year term
9 year term
10 year term
4 year term
36
The banking system of the 1980's was illustrated by
regional banking
increased competition
all of the above
S & L crisis
37
What are pyramid reserves?
large banks deposit reserves in small banks
all of the above
cash held by banks
small banks deposit reserves in large banks
38
Traveler's checks, currency, demand deposits
M3
M1
M4
M2
39
Tight money policy fights unemployment and cause inflation.
False
True
40
What are margin requirements?
discourage investment in the stock market when it is low
the percentage of cash an investor must have to by stock
generally have been set low since 1929
all of the above
41
What does the FED do today?
Holds cash reserves
all of the above
stabilizes the national monetary and banking system
makes loans to banks and the government
42
FOMC stands for...
Formal Open Monopoly Committee
Focus On Market Challenges
Federal Open Market Committee
Federal Open Market Commission
43
The FOMC controls...
credit
buying and selling of government securities
discount rate
taxes
44
Demand-side economists...
government should take a hands off approach to the economy
Dismantle the central bank
the FOMC is not important
government should take a hands on approach to the economy
45
SALT does not meet which characteristic of money?
acceptability
divisibility
durability
portability
46
Restrictive Fiscal Policy is...
buy bonds and stocks
raise taxes and cut government spending
cut taxes and increase government spending
sell bonds and stocks
47
Open market operations help to influence...
aggregate demand
availability of credit
the money supply
all of the above
48
The determinants of demand...
TRICE
MERIT
49
To encourage borrowing the FED adjusts...
discount rate
raising
stability
FOMC
50
What is economic stability?
economic freedom
economic growth
full employment
stable prices
