Before the Financial Crisis of 2008, Restrictive Monetary Policy by the Fed

question 241

Multiple Choice

Before the financial crisis of 2008, restrictive monetary policy by the Fed involved

• A)raising the target federal funds rate and using an open-market sale of bonds to adjust bank reserves and thereby raise the federal funds rate to hit its target.
• B)raising the target federal funds rate and using an open-market purchase of bonds to adjust bank reserves and thereby raise the federal funds rate to hit its target.
• C)reducing the target federal funds rate and using an open-market sale of bonds to adjust bank reserves and thereby lower the federal funds rate to hit its target.
• D)reducing the target federal funds rate and using an open-market purchase of bonds to adjust bank reserves and thereby lower the federal funds rate to hit its target.

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Definitions:

Negros De Ganhos

A term from Brazilian history referring to enslaved Africans who were allowed to work for their own earnings, albeit under conditions set by slaveholders.

Roman Catholicism

The largest branch of Christianity, led by the Pope, characterized by its liturgical traditions and doctrines like the sacraments and the teaching authority of the Church.

Brazilian Interior

Refers to the inner, often less developed and less populated regions of Brazil, contrasted with the coastal areas where the majority of the population lives.

Racial Integration

The process of ending racial segregation and bringing different racial or ethnic groups together in a society.