Which of the Following Reduced the Demand Stimulus Effects of Monetary

question 59

Multiple Choice

Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?

• A)Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans.
• B)A substantial reduction in the velocity of money resulting from the historically low interest rates.
• C)The Fed's high interest rate policy that reduced private investment.
• D)Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.

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Definitions:

Auditors

Professionals who examine and verify a company's financial statements and records for accuracy and compliance with laws and regulations.

Internal Control

Procedures and practices implemented by a company to safeguard assets, ensure accurate financial reporting, and promote compliance with laws and regulations.

Cash Receipts

The collection of money, including coins, notes, and electronic transfers, received by a business during its normal operations.

Over-The-Counter

A decentralized market where securities not listed on formal exchanges are traded directly between parties.