Reference no: EM131170630
1. When president Roosevelt devalue the dollar against gold, this:
A. was tantamount to a devaluation of the dollar against other currencies B. caused a decrease in money supply C. pushed interest rates up D. All of the answer are correct
2. In its role as lender of last resort, the Fed has authority to ____ to an _____ facing a _____ crisis
A. lend; investment bank; liquidity B. lend; commercial bank; liquidity C. give money; commercial bank; solvency D. All of the anwers are correct
3. An asset-price crash can lead to a ______, which then leads to further
A. jump in inflation; interest rate increase B. increase in treal interest rates; monetary tightening C. recession; declines in asset prices D. recession; interest rate increases
4. When Roosevelt devalued the value the dollar against gold, it _______ and ______
A. increased the value of the dollar against European currencies; increased exports
B. generated deflation; pushed the U.S economy deeper in recession C. increased money supply; raise investment D. increased interest rates; increased inflation
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