Reference no: EM13876033
1. Ways the regional Federal Reserve banks influence the conduct of monetary policy include ______.
having five presidents sit on the FOMC.
lending to the central bank.
borrowing from the central bank.
borrowing from commercial banks.
2. Criteria for the Fed choosing a policy instrument includes _______.
lack of measurability.
minimum controllability.
watching the stock market.
predictable effect on goals.
3. Standard accounting principles help financial markets work more efficiently by _______.
A. making profit verification easier.
B. reducing moral hazard.
C. increasing adverse selection.
Both A and B
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Influence the conduct of monetary policy
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Because of the adverse selection problem
: Poor people have difficulty getting loans because _____. Financial intermediaries provide their customers with _____ Because of the adverse selection problem, _____
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