C#9 & 10 Monetary Policies

Benchmark 4-C:

analyze and evaluate the patterns and results of trade, exchange and interdependence between the United States and the world since 1900:

#9 Standards with Test Item Specifications:

Explain and describe how the federal reserve system and monetary policies (e.g., open market, discount rate, change in reserve requirements) are used to promote price stability, maximum employment, and economic growth;

Sample Question:

Which condition is supported by the FDIC?

A. Investment and commercial banks cannot fail.

B. Customers do not lose money if banks fail. *

C. Banks must have a set interest rates for loans.

D. The government must have enough gold to cover its expenses.

#10 Standards with Test Item Specifications:

Identify how monetary policies can affect exchange rates and international trade;

Sample Question:

Which economic concept is related to the comparing of changes in the quantity demanded to a change in price?

A. elasticity*

B. equity

C. consumer sovereignty

D. opportunity costs