In 2008 the Fed Added a New Monetary Tool

question 36

Multiple Choice

In 2008 the Fed added a new monetary tool. What is that tool?

• A)The discount rate required for banks to borrow money
• B)Open market operations meant to change the supply of money
• C)The fed funds rate for overnight funds
• D)Interest payments to banks on their bank reserves

Identify the types of collateral used in secured loan agreements and their purposes.

Comprehend the reasons for and mechanisms behind the provision of trade credit by firms.

Distinguish between different financing arrangements involving a firm’s inventory as collateral.

Recognize the services provided by accounts receivable factors to borrowers.

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Definitions:

Family Vacation

A leisure trip taken by family members together with the aim of relaxation, recreation, or bonding.

Similarity Manipulation

A technique used to alter or influence perceptions of similarity between subjects in psychological or market research studies.

Confederate

An individual who is part of a group with a common cause or goal, often used in the context of experimental research to describe a person who is secretly working with the experimenter.

Egoism

Egoism is a theory or philosophy where the self-interest or self-concern is the foundation of morality, prioritizing one's own benefit in decision-making.