Fed Policy Procedures: Historical Perspective
1) During World War II, the Fed in effect relinquished its control of monetary policy through its policy of
A) continually lowering reserve requirements.
B) continually raising reserve requirements.
C) pegging interest rates.
D) targeting free reserves.
2) The Fed was committed to keeping interest rates low to assist Treasury financing of budget deficits
A) only during World War I.
B) during the Great Depression.
C) during World War I and World War II.
D) throughout the entire existence of the Fed.
3) The Fed Treasury Accord of March 1951 provided the Fed greater freedom to
A) let interest rates increase.
B) let unemployment increase.
C) let inflation accelerate.
D) let exchange rates increase.