ECN 211_QUIZ 41

ECN 211_QUIZ 41 - ECN 211 SLN 45992 Macroeconomic...

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ECN 211 SLN 45992 QUIZ 4 Professor Happel Macroeconomic Principles Fall 2006 8:40-9:55 MW 1. Which of the following statements about the period 1913 to 1968 is false ? a. Europe went off the full gold standard during WWI, but the U.S. remained on it. b. The Fed followed a tight money policy from 1926 to 1929, then it shrunk M 2 by 30% from 1929 to 1933. c. The Glass-Steagall Act of 1933 set up “firewalls” between commercial banks, savings and loans, and investment banks. d. The Fed and the U.S. Treasury reached the famous “accord” in 1951 that put the Fed under greater control of the Treasury and reduced the Fed’s independence. e. The Vietnam War was like other U.S. wars—the Fed increased the money supply sharply; and in 1968, the U.S. government removed the gold backing for Federal Reserve notes. 2. Which of the following statements is true ? a. One of the tools of the Fed is to set reserve requirements, and the Fed often changes reserve requirements. b. Another tool of the Fed is to engage in open market operations, and if the Fed is pursuing a tight monetary policy it buys government securities from banks. c. The Fed manages the federal funds rate, and its current target is 6.25%. d. The Fed sets the discount rate well below the intended federal funds rate. e. None of the above is true. 3.
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This note was uploaded on 03/24/2009 for the course ECN ecn 211 taught by Professor Stevehappel during the Fall '06 term at ASU.

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ECN 211_QUIZ 41 - ECN 211 SLN 45992 Macroeconomic...

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