1. Which of the following type of economic groups has never been subject to Federal Reserve regulations?

		A. consumer finance companies.
		B. commercial retailers (e.g., Macys)
		C, commercial banks.
		D.credit unions.
		E. none of the above.

2. Free banking laws, for the most part, ended which of the following state banking abuses:

		A. high risk lending in boom periods.
		B. the granting of bank charters for political favors.
		C. the inadequacy of bank reserves in the banking system.
		D. excessive note issuance by weak banks.
		E. Free banking laws ended all of the above abuses.

3. According to the Rational-Expectations School, if the money supply increases too rapidly:

		A. inflationary expectations will rise among economic decision makers in the economy.
		B. government spending will decrease.
		C. bank lending will decrease.
		D. inflationary expectations will decline among economic decision makers in the economy.E
		E. none of the above are true of this economic school.

Thank you.