Which of the Following Statements Is Most Accurate About the Fed's

question 156

Multiple Choice

Which of the following statements is most accurate about the Fed's zero interest rate policy (ZIRP) ?

• A) The Fed has abandoned the ZIRP, recognizing the need to reduce nominal interest rates to below zero.
• B) As of 2016, the ZIRP is being pursued by the Fed.
• C) It ended in late 2015, with the Fed increasing the IOER and engaging in reverse repo transactions.
• D) In an effort to end the ZIRP, the Fed prohibited nonbank lending to banks.

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Definitions:

Deindividuation

A psychological state characterized by reduced self-awareness and decreased personal responsibility in group settings.

Group

A collection of individuals who come together to achieve a common goal or share a common interest, often characterized by some level of cohesion and interaction.

Individuality

The quality or character of a particular person or thing that distinguishes them from others of the same kind, often expressed through unique behaviors, thoughts, and feelings.

Altruism

The selfless concern for the well-being of others without expecting any reward.