The statement that Mr. Friedman argued that the FED could have prevented the Depression, and he rejected the Keynesian doctrine of using government spending to stimulate demand, implies that Mr Friedman is:

a. in favor of using both fiscal policy and monetary policy simultaneously and in coordination with each other to resolve economic challenges.

b. in favor of no government or agency (FED) interference with the operation of the free market.

c. in favor of using monetary policy to resolve economic challenges, but not fiscal policy.

d. in favor of using fiscal policy to resolve economic challenges, but not monetary policy.

Mr. Friedman often called for limiting the growth of the money supply since he believed the primary goal of the FED is to:

a. provide an environment of stable prices b. stimulate the economy

c. provide an environment of full employment d. provide a plentiful money supply

People who fear the FED is stoking inflation to stimulate the economy fear:

a. that the FED will not be able to time, recognize and/or control the removal of over-expansionary funds in the system;

b. their wealth will disappear in the lowering of the tax structure to repay the debt.

c. rapid employment growth will shrink the wealth gap reported over the past 20 years;

d. increased funds available in the US will be used to purchase overseas products harming our global competitiveness.

If your Total Liabilities are $5,000,000 and your Total Assets are $5,500,000, then your Capital Ratio is :

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The normal relationship anticipated for Non-Interest Revenue and Non-Interest Expense is:

Undetermined, since there is no history on which to base assumptions

Neutral, resulting in a Sum Zero Game (neither losses nor gains)

Negative, resulting in net expenses offsetting profit from net interest

Positive, resulting in additional profit.

As a banker, if your deposits of $8 billion offer an average interest rate of T-bill + 0.5%, AND your Loan portfolio of $7 billion has an average interest Rate of T-bill + 4%, then:

you have a GAP of -3.5% c. you are earning 6.5%

you are facing a period of losses d. your GAP is an expected 3.5%