The Fed's Normalization Plan for Monetary Policy Included

question 95

Multiple Choice

The Fed's normalization plan for monetary policy included

• A)raising the federal funds target rate.
• B)raising the interest rate paid on excess reserves.
• C)using repos to insure adequate excess reserves in the banking system.
• D)raising the reserve ratio on deposits to soak up the excess liquidity in the system.Difficulty: 02 Medium

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Definitions:

Drought

An extended period of deficient rainfall relative to the statistical multi-year average for a region, resulting in prolonged shortages in the water supply.

Downward-Sloping

A graphical representation showing a decline or decrease from left to right, often used to describe demand curves where price and quantity demanded move in opposite directions.

Government Tax

Monetary charges imposed by a government on individuals, corporations, and transactions to finance government spending and services.

Labor-Market Policies

Measures and regulations implemented to influence the operation and outcomes of the labor market, including job creation, unemployment insurance, and minimum wage laws.