QUESTION 17

Support for the case against Fed independence includes _______.

		manipulation of fiscal policy
		facilitation of large budget deficits
		lack of accountability
		democratic election of fed members

1 points

QUESTION 18

An advantage of monetary targeting as a strategy for the conduct of monetary policy includes _______.

		information on whether the central bank is achieving its target is known almost immediate
		lack of ability to change monetary policy
		unreliable relationship between money and inflation

1 points

QUESTION 19

The lender of last resort function provided by the Federal Reserve System creates a ______ problem by limiting financial institutions' risk of failure from liquidity issues even in the presence of increased risk exposure by institutions.

		monetary policy
		credit
		reserves
		moral hazard