4
QuizMultiple Choice

Monetary Policy: The Federal Reserve — Unit test

Question 4 • IL-Economics

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

Answer
m
monetary policy.
t
trade policy.
f
fiscal policy.
r
regulatory policy.

Explanation

A government’s decision to limit how many goods can be sold to another nation is a rule about international trade. Such decisions are part of trade policy. Monetary policy concerns money and interest rates, while fiscal policy concerns government spending and taxes.

AI-written and checked against the verified answer.

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