1. The nominal anchor _____.
prevents bank panics
helps promote price stability
means banks that should fail stay in business
are used more frequently to raise capital
None of the above
2. The Federal Reserve System was set up with 12 regional Federal Reserve banks because ___.
13 banks would be an unlucky number
it was the best number the committee could agree upon
of the than traditional American hostility to a central bank and centralized authority
All of the above
3. A prevalant feature of debt contracts for both households and businesses is ___.
dividend payments
collateral
the going concern concept