This quiz works best with JavaScript enabled. Home > Fiscal > Policy > Fiscal Policy – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal Policy Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Open Market Committee sells bonds. What type of policy is this? A) Contractionary Fiscal. B) Expansionary Fiscal. C) Contractionary Monetary. D) Expansionary Monetary. Show Answer Correct Answer: C) Contractionary Monetary. 2. Franklin Roosevelt's New Deal program is an example of the use of ....., A) Keynesian economics. B) Laissez faire. C) Supply side economics. D) Adam Smith's theory of the invisible hand. Show Answer Correct Answer: A) Keynesian economics. 3. A budget surplus occurs when A) Government spending exceeds government revenue. B) Government spending equals government revenue. C) Government spending is less than government revenue. D) Export revenue is more than import expenditure. Show Answer Correct Answer: C) Government spending is less than government revenue. 4. Who proproses the National budget A) Congress. B) President. C) Justices. D) None of above. Show Answer Correct Answer: B) President. 5. Money must be scarce. Scarce means A) Unlimited in supply. B) Easily identified. C) Limited in supply. D) Long lasted. Show Answer Correct Answer: C) Limited in supply. 6. These programs of the federal government include Medicaid, Medicare, Social Security, Unemployment and Welfare Programs. A) Entitlement Programs. B) Discretionary Spending. C) Fiscal Policy. D) Expansionary Program. Show Answer Correct Answer: A) Entitlement Programs. 7. Higher Income = Lower Taxes A) Regressive. B) Progressive. C) Proportional. D) None of above. Show Answer Correct Answer: A) Regressive. 8. Receiving a welfare check A) Expansionary and discretionary. B) Expansionary and automatic. C) Contractionary and discretionary. D) Contractionary and automatic. Show Answer Correct Answer: B) Expansionary and automatic. 9. Money must be durable. Durable means A) Long lasting. B) Limited in supply. C) Easy to carry. D) Easily identified. Show Answer Correct Answer: A) Long lasting. 10. One of the functions of money is that it must be easily recognized. Recognizable means A) Durable. B) Identified. C) Scarce. D) Agreed upon. Show Answer Correct Answer: B) Identified. 11. The interest rate the Fed charges other banks A) Discount rate. B) Monetarism. C) Prime rate. D) Open market operations. Show Answer Correct Answer: A) Discount rate. 12. The largest category of spending for state and local governments is ..... A) Highways. B) Education. C) Fire and Police. D) Medical Costs. Show Answer Correct Answer: B) Education. 13. The tools of fiscal policy are ..... A) Interest rates. B) Taxes and Government spending. C) Checks and balances. D) Open market operations. Show Answer Correct Answer: B) Taxes and Government spending. 14. How are monetary policy and fiscal policy similar? A) They are both done by the President. B) They are both done by the Fed. C) They are both used to keep the economy stable. D) They both use four tools. Show Answer Correct Answer: C) They are both used to keep the economy stable. 15. This amount is the sum of all money the government has borrowed A) National Debt. B) Budget Deficit. C) Budget Surplus. D) Tight Money. Show Answer Correct Answer: A) National Debt. 16. What is the purpose of monetary policy? A) To change the interest rates depending on the circumstances in the economy. B) To make people pay more money on their home loans. C) To reduce the amount of debt the government has. D) To increase or lower the taxes on imported goods. Show Answer Correct Answer: A) To change the interest rates depending on the circumstances in the economy. 17. A plan to reduce aggregate demand and slow the economy A) Contractionary Fiscal Policy. B) Expansionary Fiscal Policy. C) Contractionary Monetary Policy. D) Expansionary Monetary Policy. Show Answer Correct Answer: A) Contractionary Fiscal Policy. 18. Money must be portable. Portable means A) Easy to carry. B) Long lasting. C) Limited in supply. D) Easily identified. Show Answer Correct Answer: A) Easy to carry. 19. A flat tax would be a great example of this A) Progressive. B) Regressive. C) Proportional. D) Sales. Show Answer Correct Answer: C) Proportional. 20. The Fed is ..... A) Owned and controlled by congress. B) Independent of the government. C) Owned and controlled by the banking industry. D) All of these are somewhat correct. Show Answer Correct Answer: B) Independent of the government. ← PreviousNext →Related QuizzesFiscal QuizzesFiscal Policy Quiz 1Fiscal Policy Quiz 2Fiscal Policy Quiz 3Fiscal Policy Quiz 4Fiscal Policy Quiz 5Fiscal Policy Quiz 6Fiscal Policy Quiz 7Fiscal Policy Quiz 8Fiscal Policy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books