Reference no: EM13876058
1. _____ is a central bank strategy of achieving a certain value (target) of the annual growth rate of a monetary aggregate and _____ is, among several elements, an institutional commitment to price stability as the primary, long-term goal of monetary policy.
Overnight lending rule; reserve rule
Federal funds rule; discount rate
Price rate; prime rate
Monetary targeting; inflation targeting
2. The Fed goal of price stability often conflicts with the goal of ______.
interest rate stability.
lending to the business community.
lending to other banks.
3. The Federal Reserve System was set up with twelve regional banks rather than one central bank because _______.
twelve banks were easier to manage than fifteen banks.
the U.S. Constitution limited the number of banks to twelve.
of the traditional American hostility toward centralized authority.
of Americans liking many banks.
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Central bank strategy of achieving a certain value
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