An Interesting Development That Happened in Late 2008, Relating to the Fed

question 112

Multiple Choice

An interesting development that happened in late 2008, relating to the Fed and bank reserves, was that the Fed

• A) reduced the reserve ratio drastically.
• B) required banks to hold more excess reserves.
• C) started paying interest on the banks' reserves.
• D) gave back all the reserves to the banks to hold as vault cash.

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Definitions:

High Courts

The superior courts in certain jurisdictions that typically have appellate jurisdiction and sometimes original jurisdiction.

Civil Cases

Legal disputes between two or more parties in which compensation may be awarded to the victim.

Criminal Cases

Legal proceedings brought against individuals accused of committing crimes against the state or public.

Appellate Jurisdiction

The authority of a court to review and decide on appeals from the decisions of lower courts.