1. A cost of using Fed discount operations to prevent bank panics would be ______.
the printing of more money.
withdrawing money from the economy.
a stronger banking system.
banks that should have failed will survive.
2. Economics of scale explains the existence of financial intermediaries because of ______.
more funding being available.
lower transaction costs.
increased borrower costs.
3. Benefits of using a nominal anchor for the conduct of monetary policy includes _______.
increasing the effective interest rates.
increasing employment.
promoting price stability.
lending less funds.