Nominal anchor for the conduct of monetary policy includes

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Reference no: EM13889002

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.

Reference no: EM13889002

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