A Criticism of Unconventional Monetary Policy Is That

question 15

Multiple Choice

A criticism of unconventional monetary policy is that:

• A)it involved the Fed holding too many long-term bonds, which were riskier than short-term bonds.
• B)the economy might have to go on the gold standard.
• C)the FOMC would lose its ability to set monetary policy independently.
• D)it dismantled too many banks, putting the economy at future risk.

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Definitions:

Union Army

The land force that fought for the Union during the American Civil War, which was primarily composed of regiments from the Northern states.

Copperheads

Copperheads were a faction of Northern Democrats during the American Civil War who opposed the war and advocated for peace with the Confederacy.

Northern Opponents

Refers to individuals or groups in the northern United States who opposed certain policies, practices, or institutions, often in the context of slavery or during political conflicts.