1.For each statement below answer true or false. The first word of your answer has to be either true or false. If the first word of your answer is not true or false, you receive 0 points. If the statement is true briefly explain why it is true.If your answer is false, briefly explain why it is false.

a. Federal Reserve independence is thought to introduce a short-term bias in policy making.

b. The fact that fifty years ago, the U.S. had a larger number of banks per capita than other countries at a similar level of economic development was an indication of vigorous competition within the U.S. banking industry.

c. Today (2021) regulators maintain the separation between banks and investment banks through the Glass-Steagall Act.

d. When a central bank acts as a lender of last resort, it tends to lessen the severity of the moral hazard problem.

e. In its role as a lender of last resort, the Fed should lend to banks that are solvent and illiquid.

f. The interest rate on overnight loans between banks is called the repurchase rate.

g. The interest rate decisions made by the Fed can be overridden bythe President

h. Members of the Board of Governors are appointed by the President, subject to confirmation by the Senate.