Fed Policy Procedures: Historical Perspective
1) In its earliest years, the Federal Reserve”s guiding principle for the conduct of monetary policy was known as the
A) real bills doctrine.
B) liberal liquidity doctrine.
C) free reserves doctrine.
D) quantity theory of money.
2) The guiding principle for the conduct of monetary policy that held that as long as loans were being made for “productive” purposes, then providing reserves to the banking system to make these loans would not be inflationary became known as the
A) free reserves doctrine.
B) Benjamin Strong doctrine.
C) efficient liquidity doctrine.
D) real bills doctrine.
3) The real bills doctrine was the guiding principle for the conduct of monetary policy during the
A) 1910s.
B) 1940s.
C) 1950s.
D) 1960s.
4) The Fed accidentally discovered open market operations in the early
A) 1920s.
B) 1910s.
C) 1900s.
D) 1890s.