The Fed's Mistakes of the Early 1930s Were Compounded by Its

question 22

Multiple Choice

The Fed's mistakes of the early 1930s were compounded by its decision to

• A)raise reserve requirements in 1936-1937.
• B)lower reserve requirements in 1936-1937.
• C)raise the monetary base in 1936-1937.
• D)lower the monetary base in 1936-1937.

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Definitions:

Voting Stock

Shares that give the shareholder voting rights in a company's decisions.

Net Income

A company's final profit after deducting all expenses and taxes from its total revenue.

Net Sales

Represents the revenues from goods and services sold after deducting returns, allowances for damaged or missing goods, and any discounts.

Average Total Assets

The mean value of all assets owned by a company over a specific time period, used in financial analysis.