11) Rising prices erode the value of money as a and as a .
A) unit of barter; unit of account
B) store of value; unit of liquidity
C) medium of exchange; store of value
D) store of value; unit of barter
12) Federal Reserve Board Chairmen Paul Volcker, Alan Greenspan, and Ben Bernanke all have focused on which of the following as their main goal of monetary policy?
A) high employment
B) price stability
C) economic growth
D) stability of financial markets
13) The Fed seeks to promote stability of financial markets because
A) they want to lift the self–esteem of workers.
B) Congress directed them to do so by the Employment Act of 1946.
C) resources are lost when there is not an efficient matching of savers and borrowers.
D) unstable markets result in increased efficiency.
14) One of the monetary policy goals of the Federal Reserve is price stability.
15) Since World War II, the Federal Reserve has not been involved in carrying out monetary policy.
16) Inflation rates during the years 1979–1981 were the highest the United States has ever experienced during peacetime.
17) The main goal of monetary policy for recent Fed Chairmen has been to maintain high employment in labor markets.
18) Monetary policy is conducted by the U.S. Treasury Department.
19) Maintaining a strong dollar in international currency markets is not one of the four monetary policy goals of the Fed listed in the textbook.
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