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

question 40

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:

Cultural Pluralism

The coexistence of diverse cultures in a society, where each retains its own identity while contributing to a shared national narrative.

Melting Pot

A metaphor for a society where many different types of people blend together as one.

Show Business

The industry and activities related to entertainment, including film, theater, music, and live performances.