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.