Equity
contracts account for a small fraction of external funds raised by
American businesses because

1.The immediate ( ) exchange of one currency for another is a

10. A borrowed reserves target is ______because increases in income _______interest rates and discount loans, causing the Fed to_______the monetary base, everything else held constant.

9. The Federal Reserve has been _______preemptive because of the changing view that monetary policy has to be _______looking.

8. Targeting interest rates can be procyclical because

7. Which of the following is NOT an argument against using monetary policy to prick asset -price bubbles?

6. A credit-driven bubble arises when _______in lending causes _______in asset prices which can cause _______in lending.

5. Fluctuations in the demand for reserves cause the Fed to lose control over a monetary aggregate if the Fed targets

4. Which of the following is an advantage of the Fedʹs ʺjust do itʺ approach to monetary policy?

3. Which of the following is NOT an element of inflation targeting?

2. If the relationship between the monetary aggregate and the goal variable is weak, then