This quiz works best with JavaScript enabled. Home > Fiscal > Policy > Fiscal Policy – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal Policy Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Expansionary Policy will A) Increase G and INcrease T. B) Increase G and Decrease T. C) Decrease G and Decrease T. D) Decrease G and Increase T. Show Answer Correct Answer: B) Increase G and Decrease T. 2. Money enables people to save. This function is called A) Medium of exchange. B) Unit of account. C) Store of value. D) Means of differed payment. Show Answer Correct Answer: C) Store of value. 3. The top of the organizational chart of the Federal Reserve System is the ..... A) Mayor of Washington D.C. B) President of the US. C) Head of the largest bank in the country. D) Chairperson. Show Answer Correct Answer: D) Chairperson. 4. What is the definition of a budget surplus? A) When tax revenue is greater than government spending. B) When government spending is greater than tax revenue. C) The source of finance for government spending. D) A tax on spending, on goods/services. Show Answer Correct Answer: A) When tax revenue is greater than government spending. 5. On your paycheck stub, gross income is ..... A) Not usually disclosed to you. B) The same as take-home pay. C) The total amount earned. D) The amount taken out of your paycheck for taxes. Show Answer Correct Answer: C) The total amount earned. 6. Deadline to file taxes is A) April 15th. B) April 5th. C) May 15th. D) January 1st. Show Answer Correct Answer: A) April 15th. 7. Spending that is an optional part of fiscal policy, in contrast to entitlement programs for which funding is mandatory. A) Discretionary Spending. B) Entitlement Spending. C) Supply. D) Aggregate Supply. Show Answer Correct Answer: A) Discretionary Spending. 8. Which of these is NOT a monetary policy tool? A) Discount rate. B) Balance Accounts. C) Open Market Operation. D) Reserved Requirements. Show Answer Correct Answer: B) Balance Accounts. 9. If inflation is 5% and GDP is up 4.5%, what should the FED do? A) Buy bonds. B) Raise income taxes. C) Sell securities. D) Lower the reserve requirement. Show Answer Correct Answer: C) Sell securities. 10. In response to a rising Consumer Price Index, the Federal Reserve could A) Raise taxes. B) Lower government spending. C) Lower the discount rate. D) Sell securities on the open market. Show Answer Correct Answer: D) Sell securities on the open market. 11. When income increases, the tax rate increases is an example of ..... A) Excise taxes. B) Sales taxes. C) Regressive taxes. D) Progressive taxes. Show Answer Correct Answer: D) Progressive taxes. 12. Who had a big influence on Fiscal Policy? A) John Maynard Keynes. B) Thomas Malthus. C) Josh Allen. D) Adam Smith. Show Answer Correct Answer: A) John Maynard Keynes. 13. New federal spending that has not been determined by past legislative or executive commitments is ..... A) Uncontrollable fiscal spending. B) Automatic fiscal spending. C) Discretionary fiscal spending. D) Automatic stabilizers. Show Answer Correct Answer: C) Discretionary fiscal spending. 14. When the federal government uses its spending and revenue to influence the economy A) Fiscal Policy. B) Monetary Policy. C) Keynesian Policy. D) Supply Side Policy. Show Answer Correct Answer: A) Fiscal Policy. 15. ..... is the price paid for the use of money. A) Gold. B) Monetary policy. C) Fiscal policy. D) The interest rate. Show Answer Correct Answer: D) The interest rate. 16. " ..... Officials decided to announce they would keep interest rates near zero until the unemployment rate drops to 6.5%." A) Monetary Policy. B) Fiscal Policy. C) Both Monetary and Fiscal Policy. D) None of above. Show Answer Correct Answer: A) Monetary Policy. 17. Which is most likely to increase during a downturn A) Government spending on health care. B) Consumer spending on non-durable goods. C) Firm's inventories or stocks. D) None of above. Show Answer Correct Answer: C) Firm's inventories or stocks. 18. A budget deficit is when ..... A) Spending is greater than revenue. B) Spending is less than revenue. C) The budget has been incorrectly calculated. D) Revenue is greater than spending. Show Answer Correct Answer: A) Spending is greater than revenue. 19. Monetary policies the Federal Reserve can adopt include all of the following EXCEPT A) Raising the discount rate. B) Buying government bonds. C) Lowering the reserve requirement. D) Raising personal income tax rates. Show Answer Correct Answer: D) Raising personal income tax rates. 20. Inflation is measured by ..... A) Consumer Price Index (CPI). B) Gross National Product (GNP). C) Gross Domestic Product (GDP). D) Securities & Exchange Commission (SEC). Show Answer Correct Answer: A) Consumer Price Index (CPI). ← PreviousNext →Related QuizzesFiscal QuizzesFiscal Policy Quiz 1Fiscal Policy Quiz 2Fiscal Policy Quiz 3Fiscal Policy Quiz 4Fiscal Policy Quiz 5Fiscal Policy Quiz 7Fiscal Policy Quiz 8Fiscal Policy Quiz 9Fiscal Policy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books