The Increase in Excess Reserves That Occurred as a Result

question 71

Multiple Choice

The increase in excess reserves that occurred as a result of the mortgage debt crisis

• A) was offset by restrictive monetary policy.
• B) rendered open-market operations ineffective.
• C) caused the Fed to set a negative nominal interest rate target for the federal funds rate.
• D) prevented the Fed from taking any further action to increase the money supply.

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Definitions:

Probability

The chance of an event taking place, shown as a numeric figure lying between 0 and 1.

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used as a basis in inferential statistics.

Probability

A measure of the likelihood that a specific event will occur, often expressed as a number between 0 and 1.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1.