As a Result of Policy Actions Taken by the Fed

question 332

Multiple Choice

As a result of policy actions taken by the Fed since 2008, it (the Fed) can no longer expect to affect the federal funds rate through traditional open market operations to alter the overall amount of excess reserves in the banking system. This is because

• A) Congress has taken this power away from the Fed.
• B) there is a massive amount of excess reserves already in the banking system.
• C) the federal funds rate has become rigidly fixed by law.
• D) banks are no longer holding any excess reserves.

---

Definitions:

Discrimination

Unfair or unequal treatment of individuals based on characteristics such as race, gender, age, or sexual orientation, contrary to principles of equality and justice.

Labor Unions

Organizations formed by workers from related fields that work for the betterment of their members' working conditions, wages, and benefits.

AFL

The American Federation of Labor, a national federation of labor unions in the United States.

Small Employers

Businesses with a relatively small number of employees, which may face different challenges and regulatory standards than larger organizations.