Critics of the Unconventional Monetary Policies in 2009 and 2010

question 11

Multiple Choice

Critics of the unconventional monetary policies in 2009 and 2010 argued that by deciding which financial institutions would fail and which would not, the Fed was assuming authority that rightfully belonged to

• A)the FDIC.
• B)the U.S.Treasury.
• C)the President.
• D)Congress.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Constant Rate

A fixed value of change in a quantity with respect to another quantity, often used in mathematics and economics to describe steady growth or decline.

Opportunity Cost

Missing potential benefits that could have been gained from unchosen options when deciding on one.

Production Possibilities

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.