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© 2014 Pearson Canada Inc."
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
____ 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
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
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