1144 THE FINAL SOCIAL STUDIES PACE Q&B

Question 1

The FED is a ______________, ___________ organization

Answer 1

semiautonomous, privately owned

Question 2

The FED is not an ________ of the government.

Answer 2

integral part

Question 3

The FED is, in practice an ________ of the government

Answer 3

agency

Question 4

The FED is the primary controller of the __________ of the U.S.

Answer 4

financial affairs

Question 5

The FED is supervised by a ____________ appointed by the President

Answer 5

Board of Governors

Question 6

The FED is ______ than most government agencies

Answer 6

more independent

Question 7

The FED includes a 7 member Board of Governors who cannot be removed from office or ____________

Answer 7

reappointed for additional terms

Question 8

FED

Answer 8

Federal Reserve System

Question 9

The FED conducts ____________

Answer 9

conducts monetary policy

Question 10

The FED supervises and regulates __________

Answer 10

financial institutions

Question 11

The FED serves as a _______ of last resort to financial institutions

Answer 11

lender

Question 12

The FED issues ________

Answer 12

coins and currency

Question 13

The FED provides ___________ to the U.S. government

Answer 13

banking services

Question 14

The FED is operationally _________

Answer 14

independent

Question 15

The FED ________ on Congress for its funds

Answer 15

does not depend

Question 16

The FOMC is the chief policy-making body of the ____

Answer 16

FED

Question 17

The FOMC is composed of the 7 members of the Board of Governors and 5 __________________

Answer 17

Federal Reserve bank presidents

Question 18

The federal budget is an integral part of government ____________

Answer 18

fiscal policy

Question 19

The federal budget is a plan for government __________

Answer 19

borrowing

Question 20

The federal budget is a plan for paying for ________

Answer 20

government activities

Question 21

The federal budget is a plan for spending _________

Answer 21

federal revenues

Question 22

The federal budget is a _____________ of government spending

Answer 22

historical record

Question 23

The most important function performed by the Fed

Answer 23

conducting monetary policy

Question 24

__________ the reserve requirement slows the economy

Answer 24

Increasing

Question 25

to decrease the money supply, the Fed sells ____________ on the open market

Answer 25

government securities

Question 26

One of the primary services the Fed performs for commercial banks is

Answer 26

check clearing

Question 27

During the Great Depression, Keynesian economists advocated decreasing _______ and increasing ________________ to motivate people to spend more

Answer 27

taxes | government spending

Question 28

The ___________ permits the government to collect income taxes

Answer 28

16th amendment

Question 29

____________ taxes are the fastest-growing source of federal revenue

Answer 29

social insurance payroll taxes

Question 30

progressive

Answer 30

higher for higher income

Question 31

proportional

Answer 31

equal

Question 32

regressive

Answer 32

smaller % of higher income

Question 33

The government may or may not receive revenues for _________, which are payments made to individuals through various services such as SS, unemployment benefits, welfare programs, and farm subsidiaries

Answer 33

transfer payments

Question 34

Until after WW2, government deficits resulted only from _____________

Answer 34

recessions or wars

Question 35

Both Keynesian and classical suppy-side economic policies ___________

Answer 35

increased the deficit

Question 36

When government borrows money in the private markets, interest rates tend to _______

Answer 36

rise

Question 37

Deficits increase the federal debt and the government's obligation to pay _________

Answer 37

interest

Question 38

Interest payments increase the amount the government must collect in ______ or decrease the amount it has available for other purposes

Answer 38

taxes

Question 39

When the federal debt reaches its legal limit,

Answer 39

the government can no longer borrow money | the President and Congress can enact legislation to increase the limit

Question 40

The fact that _________________ is one of the ways in which government debt differs from individual debt.

Answer 40

government debt is continuous

Question 41

The SS system was introduced as part of Franklin D. Roosevelt's _______ program

Answer 41

New Deal

Question 42

SS benefits are based on ___________ over a maximum of ____ years

Answer 42

average earnings | 35

Question 43

If a pension is __________, benefits are paid with receipts from current workers

Answer 43

unfunded

Question 44

It has been suggested that the ___________ be increased and the system be made partially funded to prevent collapse of the SS system

Answer 44

retirement age

Question 45

Government programs _________

Answer 45

assume the responsibilities of individuals place an unfair burden on those who work tend to weaken the family structure

Question 46

A financial plan encourages _____ and helps avoid the pitfall of spending all your time and effort in a quest for __________

Answer 46

wise spending | financial security

Question 47

A budget establishes ___________, develops a long-run __________, and prevents __________

Answer 47

economic priorities financial plan interpersonal conflicts

Question 48

Rent or mortgage payments and basic transportation, food and utility expenses

Answer 48

fixed

Question 49

entertainment and recreation, gifts, and clothing are

Answer 49

variable

Question 50

In the U.S, credit has increased rapidly

Answer 50

.

Question 51

Most Bible scholars believe that God's Word requires ____________ for any loan and demands that borrowers always __________ the debt

Answer 51

collateral | repay

Question 52

Many homeowners choose to pay more than their minimum mortgage payment each month because the extra money is applied to the principal balance and ___________

Answer 52

reduces the amount of interest they must pay

Question 53

Steps to saving money include reducing expenditures and setting aside _________

Answer 53

a specific amount of money each month or each payday

Question 54

An ____________ is an individual's pension plan at a bank or other financial institution

Answer 54

individual retirement account

Question 55

Investors in a Roth IRA pay _______ on their IRA deposits but pay no tax on the accumulated interest after they retire

Answer 55

income tax

Question 56

Our ____________ has no bearing on our status with God

Answer 56

economic status