1. List the major categories that the U.S. government spends its tax revenue on and indicate what percentage of tax revenue is spent on these categories on an annual basis

1. Fiscal Policy
   1. What is Fiscal Policy and what is it used for?
   2. There are 2 types of fiscal policy tools that we discussed. Name them both, and give a brief description of each. (Include any subcategories.)
   3. Briefly discuss the effects of time lags in relation to fiscal policy. (i.e. what are some practical difficulties?)

1. Identify and briefly explain the three specific functions of money that economists have identified.

1. Briefly describe the items that are included in the M1 and M2 definitions of money.

1. What are the financial institutions that make up our banking system?
2. Briefly describe their role and function.
3. Briefly explain the role played by banks between savers and borrowers and the economic benefit, if any, derived from their taking on this role.

1. How many Federal Reserve banks are there?
2. Where is the closest bank?
3. Name the current Federal Reserve Chair?

1. What are the three tools of the Federal Reserve? Briefly describe the tools used by a central bank to affect the money supply and identify which is the most powerful and commonly used method and which is the weakest method.

1. Discuss the reserve requirements method of conducting monetary policy, including a description of this method, the types of adjustments banks are likely to be required to make and the effects on the economy that are likely to result.