The Federal Reserve Act   a.  established a clearinghouse system for checks and notes.    b.  allowed only nationally-chartered banks to become members of the Federal Reserve system.   c.  allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates.   d.  required that all Fed District Bank directors be associated with the commercial banking industry.

The majority of slaves that were brought to the New World during the colonial period were used in the production of:   a.  cotton.   b.  sugar.   c.  tobacco.   d.  rice.

Which of the following most accurately describes the “Fisher effect?”    a.  Interest rates increase after inflation and decrease after deflation, but with a long lag.    b.  Interest rates are independent of inflation and deflation.    c.  Interest rates increase after inflation, but are not affected by deflation.    d.  Increasing interest rates precede inflation and decreasing interest rates precede deflation. 

“Automatic stabilizers” played a part in reducing the length and severity of the recession of 1953-54.  This term refers to   a.  deficit spending by the federal government.   b.  spending on education by local and state governments.   c.  programs like unemployment insurance and Social Security.   d.  actions by the Federal Reserve aimed at reducing interest rates.

Which of the following most accurately describes the “Fisher effect?”    a.  Interest rates increase after inflation and decrease after deflation, but with a long lag.    b.  Interest rates are independent of inflation and deflation.    c.  Interest rates increase after inflation, but are not affected by deflation.    d.  Increasing interest rates precede inflation and decreasing interest rates precede deflation. 

cording to Walton and Rockoff, all of the following were among Jefferson’s main goals for land policy except:   a.  To assure clear property rights to the land owned by individuals.    b.  To drive Indians off the land and secure it for American settlers.    c.  To provide revenues to the federal government through sales.    d.  To spread democratic institutions.

Deflation   a.  often accompanies increases in the money supply.   b.  is good for borrowers, but bad for lenders.   c.  is good for lenders, but bad for borrowers.   d.  cannot occur under a bimetallic standard. 

According to Gresham’s Law,   a.  inflation and unemployment are inversely related.   b.  tax rates and tax revenues are inversely related.   c.  bad money drives out good money.   d.  inflation is inevitable in the long run.

cording to Walton and Rockoff, all of the following were among Jefferson’s main goals for land policy except:   a.  To assure clear property rights to the land owned by individuals.    b.  To drive Indians off the land and secure it for American settlers.    c.  To provide revenues to the federal government through sales.    d.  To spread democratic institutions.

During Prohibition the consumption of alcohol _____ and the crime rate _______.    a.  fell; fell   b.  fell; increased   c.  increased; fell.   d.  increased; increased.