FINA 4400-3

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  1. how did milton friedman and anna schwartz explain the feds fialure to aggressively pursue open market purchases after the summer of 1932?
    the untimely death of benjamin strong, combined with the early decentralized organizaton of teh fed left the fed without effective leadership
  2. in their 1984 journal of economic history article, how did epstein and ferguson explain the feds fialure to aggressively pursue open market purchases from 1929 to 1933?
    bankers were opposed to open market purchases because they were concered that lower treasury yields would compress their net interest margins
  3. what happend to free (excess) and requried reserves during the period 1935-39?
    after the fed increased reserve requriements, free reserves fell at first but then increased
  4. what was the result of teh decision to raise reserve requiremetns in 1935?
    the roosevelt recession
  5. how did changes inreserve requiremtns and changes int eh monetary base affect the economy during 1935-39?
    increases in reserve requiremtns dominated teh effect of an increase in teh monetary base
  6. what monetary policy actions were authorized byt he thomas inflation amendments?
    the president was authorized(but not required) to direct the treasury to issue $3 billion in greenbacks to retire outstanding bonds
  7. what was the crime of 1873?
    the US officially adopted the gold standard
  8. what is teh significance of excetuive order 6102?
    president franklin roosevelt required US citizens to surrender gold bullion to the treasury
Card Set
FINA 4400-3
exam 3 questions
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