Wall Street bankers opposed the Second Bank of the United States. Their opposition was based on the idea that the Second Bank
a. lent too freely to the federal government.
b. followed a monetary policy that favored stable prices even at the cost of a slower growing economy.
c. followed a monetary policy that kept interest rates too high.
d. favored Philadelphia because that was where the head office of the bank was located.
Question 2
Alan Greenspan's overall approach to monetary policy:
a. has been partly credited for the expansion of the 1990s.
b. relied heavily on the monetization of debt during economic downturns.
c. typically responded to economic downturns by lowering the federal funds rate.
d. Both a and b are correct.
e. both a and c are correct.
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