11
practice testMultiple Choice

Practice Test

Question 11 • Personal Finance and Economics

When a government decides to limit the number of goods that can be sold to another nation, that government is creating

Answer
A
fiscal policy.
B
regulatory policy.
C
trade policy.
D
monetary policy.

Explanation

Limiting how many goods can be sold to another nation is a trade restriction, so it is part of trade policy. Fiscal policy concerns government spending and taxes, while monetary policy concerns the money supply and interest rates. Regulatory policy sets rules for economic activity more broadly.

AI-written and checked against the verified answer.

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