History Generally Supports the contention that under the guidance of Paul Volcker, a(n) ________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.

A) loosening of
B) restrictive
C) expansionary
D) two of the above
E) none of the above 

Eligible paper that the borrowing institution can sell to the Reserve Bank includes:

A) common stock

B) corporate bonds

C) U.S. government bonds

D) all of the above

The National Banking Act of 1864 provided for:

A) federally chartered banks

B) the establishment of a system of central banks

C) deregulation and monetary control

D) the establishment of deposit insurance

The United States created its system of central banking:

A) earlier than such banks were established in other industrial nations

B) later than such banks were established in other industrial nations

C) to facilitate branch banking

D) to facilitate international exchange operations

The adequacy of capital for commercial banks as measured by regulatory authorities is:

A) a composite of various asset risk categories

B) a measure of investment success

C) based on the total amount of deposits of a bank

D) based on the ratio of federal government obligations to deposits

Which of the following is not a method by which the Federal Reserve establishes monetary policy?

A) setting reserve requirements

B) altering the discount rate

C) through federal open market operations

D) setting bank profitability ratios

E) none of the above

Savings banks have nearly three quarters of their assets in the form of:

A) securities

B) cash

C) unsecured loans

D) real estate mortgages and mortgage-backed securities

The National Banking Acts of 1863 and 1864 were:

A) totally eliminated under the Federal Reserve Act of 1913

B) were modified to permit greater flexibility of operations under the Federal Reserve Act of 1913

C) were unaffected by the Federal Reserve Act of 1913

D) none of the above