Which of the Following Statements Is Most Accurate About the Fed's

question 90

Multiple Choice

Which of the following statements is most accurate about the Fed's use of the federal funds rate target since the 2008 financial crisis?

• A) It stimulated quick recovery from the Great Recession, and the target is now at pre-crisis levels.
• B) The target has become significantly more important as a tool for signaling policy changes.
• C) The Fed effectively lost the ability to use the target for monetary policy since there is a lack of reserves today.
• D) The Fed effectively lost the ability to use the target for monetary policy since banks no longer have a problem meeting their reserve requirement.

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Definitions:

Ashton and Lee

Psychologists Michael Ashton and Kibeom Lee, known for their work in personality traits, including the HEXACO model of personality structure.

Neuroticism

A characteristic of personality defined by feelings of anxiety, sadness, concern, envy, frustration, jealousy, and isolation.

Emotionality

Refers to the intensity and range of emotional responses observed in an individual.

Dark Triad

A psychological concept that encompasses three negative personality traits: narcissism, Machiavellianism, and psychopathy.