Taxes & Spending
Federal & State Budget
National Deficit & Debt/ Fiscal Policy
Federal Reserve
Monetary Policy
100
What are the 3 types of taxes?
Progressive, Regressive, Proportional
100
The federal budget is put together by who?
The White House & Congress
100
What is the difference between national deficit and national debt?
Deficit is within one fiscal year, debt is total.
100
How many Federal reserve districts are there?
12
100
Who sets the required reserve ratio?
Federal Reserve
200
What is an excise tax?
Excise tax is a tax on the sale or production of a good.
200
List 1 example each of mandatory spending & discretionary spending.
Mandatory- S.S., Medicare, Medicaid Discretionary- Answers will vary
200
What is Fiscal Policy?
Fiscal policy is the federal government’s use of taxing and spending to keep the economy stable.
200
The Federal Reserve is known for what?
Regulate the nation's money supply.
200
What is Monetarism?
Belief that the money supply is the ?most important factor in macroeconomic performance
300
List 2 of the 3 entitlement programs.
Social Security, Medicare, Medicaid
300
List atleast 3 forms of discretionary federal spending.
Education Environmental cleanup National parks and monuments Scientific research Farm subsidies Foreign aid
300
Name 2 of the 4 limits of fiscal policy.
Difficulty of Changing Spending Levels Predicting the Future Delayed Results Political Pressures
300
What is the "lender of last resort"?
The federal reserve loans money out to banks in financial emergency.
300
What are the 3 tools used to achieve monetary policy goals?
Discount rates, Reserve Requirements, Open-market operations
400
How do states primarily collect taxes and what do they spend tax dollars on?
Sales tax, property tax. Education, public safety, and road construction.
400
What accounts for the largest federal spending category?
Social Security
400
What are tools for expansionary fiscal policy?
Cutting taxes, increase government spending
400
Who issues paper currency and who issues coin currency?
Paper- Federal reserve Coin- Dept. of treasury
400
Open market operations are the buying and selling of stocks in a global market. True or False?
False, buying and selling of government ?securities to alter the money supply.
500
If there is an elastic product getting taxed higher who will bare the burden of the incident of the tax? Consumer or producer?
Producer
500
What is operating budget and what is capital budget?
Operating budget pays for day-to-day expenses. These include salaries, supplies, and maintenance of state facilities. Capital budget pays for major capital, or investment, spending.
500
What are the 2 types of economic schools and what do they believe in?
Classical economics believe that markets regulate themselves. Keynesian economics is the idea that the economy is composed of three sectors — individuals, businesses, and government.
500
Name 6 of the 12 cities in which there is a money creating federal reserve bank.
San Francisco, Atlanta, Minneapolis, Dallas, Boston, Kansas City, St. Louis, Chicago, Cleveland, Philadelphia, New York, Richmond
500
What happens to the money supply when government bonds are purchased by the federal reserve?
Money supply increases.
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