How the Government Protects the U.S. Economy


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question 1 of 3

Which of the following is NOT a goal of the U.S. government that can be accomplished by fiscal policy?

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1. You are an adviser to the Federal Reserve. Select which of the following is a goal that monetary policy should NOT strive towards nor have influence over?

2. The Federal Reserve has noticed that expenditures are decreasing and that the number of loans requested has decreased significantly. What will they aim to do to increase the number of loan requests?

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About This Quiz & Worksheet

These assessment tools aim to test your understanding of topics like the government's and the Federal Reserve's roles in protecting the U.S. economy. You'll receive your scores for this multiple-choice quiz immediately.

Quiz & Worksheet Goals

Challenge your knowledge of government and economics with questions on the following:

  • Goals of the U.S. government to protect the economy using fiscal policy
  • Goals of the Federal Reserve to protect the economy using monetary policy
  • The effects of moderate long-term interest rates
  • The term for the cycle of prosperity followed by recession
  • Facts about how the government protects the economy

Skills Practiced

At the same time that you're checking your knowledge, you'll be developing the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on the government's impact on the U.S. economy
  • Making connections - use understanding of the concept of the economy as related to government and individual investors
  • Information recall - access the knowledge you've gained regarding economic cycles
  • Knowledge application - use your knowledge to answer questions about how the U.S. government protects the economy

Additional Learning

Review the lesson titled How the Government Protects the U.S. Economy for a deeper look at this subject. The following objectives are covered by this lesson:

  • Define fiscal policy and monetary policy
  • Identify three uses of fiscal policy
  • Examine recessions and why they occur
  • Explore inflation
  • Identify three goals of using monetary policy