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U.S. Fiscal & Monetary Policy Flashcards | StudBud
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U.S. Fiscal & Monetary Policy
U.S. Fiscal & Monetary Policy
36 terms
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StudBud Administration
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fiscal and monetary policy
Flashcards
36 cards
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Practice quiz
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Questions
36
Answers
1
Something that the government must provide if requirements to receive it are met is called:
Entitlement
Freebie
Welfare
Benefit
2
Why would the Fed want to raise interest rates?
To slow inflation
To decrease the amount of money (liquidity)
To increase the borrowing of money
Both a and b
3
Spending that Congress or the President has no power to change directly is called:
Discretionary
Both a and c
Mandatory
Uncontrollable
4
An example of mandatory spending
Military
Mr. Pryor's salary
Social Security
Interest on the debt
5
What is the rate charged banks to borrow from the Federal Reserve banks -- higher than Fed fund
Discount rate
Rate rate
Saving rate
Reserve rate
6
What are the main ways Congress can slow down an economy?
Spending more and taxing less
None of the above
Cutting spending and raising taxes
Spending less and taxing less
7
Bonds bought from the gov. and will pay interest (and original amount) once they meet maturity
Securities
Treasuries
T-bills
All of the above
8
How does the Fed funds rate impact you?
Impacts car loan rates
All of the above
Impacts college loan rates
Impacts mortgage rates
9
What does OMB stands for?
Official Money Bureau
Office of Money and Business
Office of Management and Budget
Office of Money and Bills
10
When Congress and the President use government spending and taxation to influence the economy
Monetary policy
Fiscal policy
Gross Domestic Product (GDP)
Physical policy
11
What is an example of controllable spending?
Military
Social Security
Food stamps
Both a and c
12
What is liquidity?
When the economy is flowing well
Government spending money
The amount of money supply
Draining money out of the economy
13
When a central bank manages the money supply to help the economy
Contractionary monetary policy
Monetary policy
Expansionary monetary policy
Fiscal policy
14
This economic view believes in government spending to stimulate the economy:
Blind-side
Demand-side
Supply-side
Expenditure-side
15
Which government agency spends more than any other?
Social Security
Defense
Justice
Health and Human Services
16
Type of financial aid or support given to an economic sector
Subsidy
Grant
Bond
Loan
17
Specific items that the government decides to fund is called:
Discretionary spending
Voluntary spending
Decisionary spending
Uncontrollable spending
18
What does the Federal Open Market Committee (FOMC) do?
Sets the Feds fund rate
They are connected to the Federal Reserve
All of the above
Meets 8 times a year
19
What has the authority to provide money for the federal government to operate?
President
The People
Congress
The House
20
What is involved with fiscal policy?
Entitlements, deficits, a budget, and inflation
Income, expenditures, Congress, and recession
Congress, Federal Reserve, President, and taxes
A budget, Congress, taxation, and spending
21
This requires banks to keep a certain amount of money available -- not to lend out
Savings requirement
Fed funds rate
Bank clause
Reserve requirement
22
When the government has more income/revenue than spending
Surplus
All of the above (seriously!)
LOL
Fake news
23
A general increase in prices (and fall in purchasing value of money) is called:
Expansion
Recession
Inflation
Tribulation
24
The total amount of money that a country's government owes/borrowed
National calamity
National debt
National disgrace
National deficit
25
Which is the largest type of spending the government does?
Controllable
Mandatory
Both a and c
Discretionary
26
Why would the Fed want to lower interest rates?
to make it easier/cheaper to get loans
All of the above
To increase the amount of liquidity
To stimulate the economy
27
A recession means that . . .
The economy has slowed down
Congress is spending too much money
The economy is getting better
The economy static
28
An estimate of revenue and expenditures for a year is called:
A budget
Interest
Capital
A financial statement
29
The goal is stimulating economic growth by the government cutting taxes or spending more.
Expansionary monetary policy
Economic Growth Policy (EGP)
Government stimulus
Expansionary fiscal policy
30
Two of the three main goals of the Federal Reserve:
To reduce inflation and unemployment
To control interest rates and spending
To loan money and sell bonds
To reduce debt and corruption
31
This view of economics prefers cutting taxes to stimulate the economy:
Saving-side
Supply-side
Demand-side
Chopping-block
32
When spending is more than revenue
Deficit
Divot
Discretionary
Detriment
33
What is interest?
The money paid by the borrower to the lender
Something you like to do
Amount of money paid for the use of money
Both b and c
34
The name of our central bank
The Federal Reserve
The Money Place
The Fed
Both a and c
35
This is the interest rates banks charge each other that is set by the Federal Reserve
Interest reserve rate
Fed funds rate
The great rate
Lending rate
36
This is used to shrink economic growth to stop inflation:
Contractionary fiscal policy
Expansionary fiscal policy
Shrinky-dinky fiscal policy
Constriction fiscal policy
