1) Either a dual or hierarchial mandate is acceptable as long as ________ is the primary goal in the ________.

A) price stability; short run

B) price stability; long run

C) reducing business cycle fluctuations; short run

D) reducing business cycle fluctuations; long run

Origins of the Federal Reserve System

2) The First Bank of the United States

A) was disbanded in 1811 when its charter was not renewed.

B) had its charter renewal vetoed in 1832.

C) was fundamental in helping the Federal Government finance the War of 1812.

D) None of the above.

3) The Second Bank of the United States

A) was disbanded in 1811 when its charter was not renewed.

B) had its charter renewal vetoed in 1832.

C) is considered to be the primary cause of the bank panic of 1907.

D) None of the above.

4) The public”s fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking:

A) the First Bank of the United States and the Second Bank of the United States.

B) the First Bank of the United States and the Central Bank of the United States.

C) the First Central Bank of the United States and the Second Central Bank of the United States.

D) the First Bank of North America and the Second Bank of North America.