the economics of money, banking, and financial markets

17 "

© 2014 Pearson Canada Inc."

21. 
    

    The management of money and interest rates is called ____ policy and is conducted by
    a nation's ____ bank.
    A) debt; superior
    B) fiscal; superior
    C) fiscal; central
    D) monetary; central
    Answer: D
    Diff: 1 Type: MC Page Ref: 10
    Skill: Recall
    Objective List: 1.3 Describe why money is a major influence on inflation, business cycles, and
    interest rates

    
    


22. 
    

    ____ policy involves decisions about government spending and taxation.
    A) Monetary
    B) Fiscal
    C) Risk Management
    D) Systemic
    Answer: B
    Diff: 1 Type: MC Page Ref: 10
    Skill: Recall
    Objective List: 1.3 Describe why money is a major influence on inflation, business cycles, and
    interest rates

    
    


23. 
    

    When tax revenues are greater than government expenditures, the government has a budget
    ____.
    A) crisis
    B) deficit
    C) surplus
    D) revision
    Answer: C
    Diff: 1 Type: MC Page Ref: 10
    Skill: Recall
    Objective List: 1.3 Describe why money is a major influence on inflation, business cycles, and
    interest rates

    
    


24. 
    

    A budget ____ occurs when government expenditures exceed tax revenues for a
    particular time period.
    A) deficit
    B) surplus
    C) surge
    D) surfeit
    Answer: A
    Diff: 1 Type: MC Page Ref: 10
    Skill: Recall
    Objective List: 1.3 Describe why money is a major influence on inflation, business cycles, and
    interest rates