ECON UNIT 5: ECONOMIC POLICY
EXAM 2025 QUESTIONS AND ANSWERS
Which of these are goals of an expansionary policy? Check all that apply.
increased available credit
decreased available credit
increased money supply
increased inflation
increased interest rates
decreased interest rates - ANS increased available credit
increased money supply
decreased interest rates
Which is the most liquid form of money?
cash and currency in circulation
investment accounts
savings accounts
demand accounts - ANS cash and currency in circulation
What happens when a bank is required to hold more money in reserve?
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, It has less money for loans.
It has less money for operations.
It has less money for interest payments.
It has less money for withdrawals. - ANS It has less money for loans.
In which of the following ways do governments spend money to meet public needs? Check all
that apply.
by protecting the public
by arming the public
by providing health care
by supporting education
by building roads and bridges - ANS by protecting the public
by providing health care
by supporting education
by building roads and bridges
Which describes an example of the economic system known as free enterprise?
People are free to shop around for products, but manufacturers dictate what is available.
People are free to shop for the best price on products because there is open competition.
Government oversight of business gives people freedom to shop for the best deals.
Government regulations ensure that everyone has the freedom to shop for the best deals. -
ANS People are free to shop for the best price on products because there is open
competition.
What advantages does money have over bartered goods? Check all that apply.
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
EXAM 2025 QUESTIONS AND ANSWERS
Which of these are goals of an expansionary policy? Check all that apply.
increased available credit
decreased available credit
increased money supply
increased inflation
increased interest rates
decreased interest rates - ANS increased available credit
increased money supply
decreased interest rates
Which is the most liquid form of money?
cash and currency in circulation
investment accounts
savings accounts
demand accounts - ANS cash and currency in circulation
What happens when a bank is required to hold more money in reserve?
1 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
, It has less money for loans.
It has less money for operations.
It has less money for interest payments.
It has less money for withdrawals. - ANS It has less money for loans.
In which of the following ways do governments spend money to meet public needs? Check all
that apply.
by protecting the public
by arming the public
by providing health care
by supporting education
by building roads and bridges - ANS by protecting the public
by providing health care
by supporting education
by building roads and bridges
Which describes an example of the economic system known as free enterprise?
People are free to shop around for products, but manufacturers dictate what is available.
People are free to shop for the best price on products because there is open competition.
Government oversight of business gives people freedom to shop for the best deals.
Government regulations ensure that everyone has the freedom to shop for the best deals. -
ANS People are free to shop for the best price on products because there is open
competition.
What advantages does money have over bartered goods? Check all that apply.
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
