Quiz 4

Quiz 4 - ECN 111 SLN 76868 Macroeconomic Principles...

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ECN 111 SLN 76868 QUIZ 4 Professor Happel Macroeconomic Principles Spring 2006 9:15-10:30 MW 1. Which of the following statements about the period 1933 to 1973 is false ? a. The Glass-Steagall Act of 1933 set up “firewalls” between commercial banks, savings and loans, and investment banks. b. The Bretton Woods meetings in 1944 put the allies on a full gold standard. c. The Fed and the U.S. Treasury reached the famous “accord” in 1951 that removed the Fed from under the control of the Treasury and gave the Fed far greater independence. d. The Vietnam War was like other U.S. wars—the Fed increased the money supply sharply. e. In 1968, the U.S. government removed the gold backing for Federal Reserve notes and by 1973 the U.S. was completely off any gold standard and had floating exchange rates. 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 it has raised this rate at each FOMC meeting since June, 2004. d. The Fed sets the discount rate below the intended federal funds rate. e.
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This note was uploaded on 04/10/2008 for the course ECN 111 taught by Professor Gooding during the Fall '04 term at ASU.

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Quiz 4 - ECN 111 SLN 76868 Macroeconomic Principles...

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