1. Which of the following are functions of a central bank?

a) regulating banks

b) clearing checks

c) acting as lender of last resort

d) all of the above

2. For what period of time was the United States without a central bank?

a) 1776-1864

b) 1837-1914

c) 1919-1944

d) none of the above

3. Which of the following are costs of high and/or unexpected inflation?

a) increased uncertainty

b) higher nominal interest rates

c) hurts net creditors

d) all of the above

4. Who of the following always serve on the FOMC?

a) the President of the United States

b) the President of the FRBDC

c) The President of the FRBNY

d) all of the above

5. When a country uses a foreign currency as its medium of exchange, it is using

a) monetarization

b) dollarization.

c) a dirty float.

d) none of the above.