Money, Banking, Fiscal & Monetary Test Review

The FICA tax taken out of your pay are used to fund:

Property taxes on your parents' house are a major source of funding for:

If the US unemployment rate is 5%, is that good or bad?

If you make a big profit selling stocks or a house, you will have to pay:

What economist inspired the New Deal with his theories on expansionary fiscal policy?

You put $5 in a change machine & get 20 quarters. What feature of money does that display?

What are junk bonds?

Which side wanted the United States to have a strong national bank?

All the stocks an investor owns are referred to as her:

Which of these is NOT a basic use of money?

When did the US go off the gold standard for good?

Why would someone apply for a mortgage loan?

When would the Fed engage in "easy money" policies?

M1, the first measure of the money supply, includes all cash in circulation and:

If a bank is in danger of going under, where can they borrow money as a last resort?

If the city of Seattle builds a subway system, they'll need billions of dollars. How will they raise that money?

When the Fed decreases the money supply, what happens?

The reserve requirement is:

What's the biggest danger in increasing the money supply too much?

Which of these is "commodity money"?

Canada uses "loony" coins instead of paper dollars. What feature of money does this reflect?

What is the discount rate?

Cyclical unemployment means you've lost your job because...

The IRS cuts $500 from the taxes you owe if you bought an energy efficient refrigerator last year. That would be a:

If your local bank goes out of business, what happens to your life savings?

If self driving cars become popular, taxi drivers may all lose their jobs. That would be:

True or false: most countries still use the gold standard

What graph tells us that lowering unemployment usually requires creating inflation (and vice versa)?

If the government wants to get consumers spending more money, and to create more jobs, what will they do?

If a farmer trades chickens for clothing at the market, that's:

When banks borrow money from other banks, they pay it back at:

Because of withholding, what happens on April 15th?

Milton Friedman was a "classical" economist. So, what was his approach to the economy?

If the Fed wants to expand the economy, what might they do?

Milton Friedman was also a "monetarist." What do monetarists believe.

When the Fed buys bonds and puts more cash in circulation, that is:

If you've given up searching for a job after looking for a year, are you counted as unemployed?

How does "money creation" occur?

What is the job of the county assessor?

In order to get a loan from the bank, you may have to put up one of your valuable possessions (like your house) as:

The money multiplier effect means that, when the Fed buys $1 billion worth of bonds from banks...

"Stagflation" means that:

Why was the Federal Reserve System created in 1913?

What does it mean when the Fed engages in "Open Market Operations"?

True or False: If the economy is very strong, we should have a zero percent unemployment rate.

Why are Federal Reserve Board governors appointed by the President to 14 year terms?

"Fiscal policy" means the government uses what means to control the economy?

What happens when a borrower cannot afford to make his mortgage payments?

True or False: A progressive tax takes a higher percentage of income from the rich than from the poor.

If fiscal or monetary policy is successful, what will it do?