The real bills doctrine was the guiding principle for the conduct of monetary policy during the
A)1910s.
B)1940s.
C)1950s.
D)1960s.

Question

Quizplus · Accepted Answer

The real bills doctrine was the guiding principle for the conduct of monetary policy during the 1910s, particularly under the Federal Reserve Act of 1913. The doctrine held that the central bank should only lend to banks against short-term, self-liquidating commercial paper that reflected real economic activity, thereby preventing inflationary credit expansion.

The Real Bills Doctrine Was the Guiding Principle for the Conduct