Which of the following changed the LEAST over time?

The peak AND trough of the business cycle with fiscal policy

Which has the greatest difference between them?

The peak w/o fiscal policy AND the peak w/ fiscal policy

Money is funneled through the Fed to pay for...

Office supplies for the U.S. Department of the Treasury

Which best describes the business cycle WITH fiscal policy?

Moderate highs AND moderate lows

Which action decreases the money supply?

The Fed raises the discount rate

At which point is real GDP at its LOWEST?

The TROUGH phase of the business cycle without fiscal policy

Which has the least difference between them?

The contraction AND trough of the business cycle with fiscal policy

Which changed the MOST over time?

The first AND second expansion of the business cycle without fiscal policy

The unemployment rate is 4% & the CPI is 7% & rising. Which action would be most effective in stabilizing the economy?

The Fed sells bonds & the federal government decreases spending

Which statement is accurate?

Stocks bought from Fed district banks may NOT be traded on the open market

Which action increases the money supply?

The Fed buys bonds on the market

At which point is real GDP at its HIGHEST?

The 2ND EXPANSION of the business cycle without fiscal policy

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Ch. 16 "The Federal Reserve & Monetary Policy"

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The Federal Reserve System, Functions of the Fed, Monetary Policy, and Applying Monetary & Fiscal Policy

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Questions 20

Answers

1
Which of the following changed the LEAST over time?
The peak AND trough of the business cycle with fiscal policy
The first AND second expansion of the business cycle without fiscal policy
The first AND second expansion of the business cycle with fiscal policy
The peak AND trough of the business cycle without fiscal policy
2
Which has the greatest difference between them?
The trough w/o fiscal policy AND the trough w/ fiscal policy
The 2nd expansion w/o fiscal policy AND the 2nd expansion w/ fiscal policy
The 1st expansion w/o fiscal policy AND the 1st expansion w/ fiscal policy
The peak w/o fiscal policy AND the peak w/ fiscal policy
3
Money is funneled through the Fed to pay for...
Seeds for a farmer who wants to plant more crops
A business constructing a new building
An entrepreneur attempting to start a business
Office supplies for the U.S. Department of the Treasury
4
In 1987, President Ronald Reagan appointed a NEW chairman of the Federal Reserve Board of Governors. This person was:
Alan Greenspan
Paul Volcker
Ben Bernanke
Jerome Powell
5
Which phase of the business cycle without fiscal policy has the sharpest DECLINE?
The trough
The peak
The expansion
The contraction
6
Which best describes the business cycle WITH fiscal policy?
Moderate highs AND extreme lows
NO highs or lows
Moderate highs AND moderate lows
Extreme highs AND extreme lows
7
What will happen if a contractionary monetary policy AND an expansionary fiscal policy are used at the same time?
The money supply will DECREASE
Unemployment will DECREASE
Prices will INCREASE
Interest rates will INCREASE
8
If inflation INCREASES sharply, which would help banks make a profit?
Decreasing the federal funds rate
Increasing the required reserve ratio
Decreasing the discount rate
Increasing the prime rate
9
Which action decreases the money supply?
The Fed raises the discount rate
The federal government spends less on government programs
The federal government lowers taxes
The Fed buys bonds on the market
10
At which point is real GDP at its LOWEST?
The TROUGH phase of the business cycle with fiscal policy
The PEAK phase of the business cycle without fiscal policy
The PEAK phase of the business cycle with fiscal policy
The TROUGH phase of the business cycle without fiscal policy
11
Which has the least difference between them?
The contraction AND trough of the business cycle with fiscal policy
The peak AND trough of the business cycle with fiscal policy
The contraction AND trough of the business cycle without fiscal policy
The peak AND trough of the business cycle without fiscal policy
12
Which changed the MOST over time?
The peak AND trough of the business cycle with fiscal policy
The peak AND trough of the business cycle without fiscal policy
The first AND second expansion of the business cycle without fiscal policy
The first AND second expansion of the business cycle with fiscal policy
13
The BOARD of seven (7) appointed members who supervise the operations of the Fed and set policy is called the:
Board of Trustees
Board of Bankers
Board of Governors
Board of Regulators
14
The unemployment rate is 4% & the CPI is 7% & rising. Which action would be most effective in stabilizing the economy?
The Fed lowers the discount rate & the federal government raises taxes
The Fed buys bonds & the federal government increases spending
The Fed sells bonds & the federal government decreases spending
The Fed raises the discount rate & the federal government decreases taxes
15
Which statement is accurate?
Members of the Board of Governors are ELECTED to 14-year terms
The FOMC supervises the sale & purchase of state government securities
Stocks bought from Fed district banks may NOT be traded on the open market
District banks are responsible for carrying out the President's policies
16
Which best describes the business cycle WITHOUT fiscal policy?
NO highs or lows
Extreme highs AND extreme lows
Moderate highs AND extreme lows
Moderate highs AND moderate lows
17
Which action increases the money supply?
The Fed buys bonds on the market
The federal government decreases government spending
The federal government increases personal income taxes
The Fed raises the discount rate
18
The BOARD of the Fed that supervises the sale & purchase of federal government securities is called the:
Federal Bond Advisory Committee
Federal Securities Committee
Federal Open Market Committee
Federal Sale and Purchase Committee
19
Which phase of the business cycle with fiscal policy has the HIGHEST GDP?
The 2ND expansion
The contraction
The trough
The 1ST expansion
20
At which point is real GDP at its HIGHEST?
The 2ND EXPANSION of the business cycle with fiscal policy
The CONTRACTION of the business cycle with fiscal policy
The CONTRACTION of the business cycle without fiscal policy
The 2ND EXPANSION of the business cycle without fiscal policy

Ch. 16 "The Federal Reserve & Monetary Policy" Flashcards | StudBud