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

question 156

Multiple Choice

Which of the following statements is most accurate about the Fed's zero interest rate policy (ZIRP) ?

• A) The Fed has abandoned the ZIRP, recognizing the need to reduce nominal interest rates to below zero.
• B) As of 2016, the ZIRP is being pursued by the Fed.
• C) It ended in late 2015, with the Fed increasing the IOER and engaging in reverse repo transactions.
• D) In an effort to end the ZIRP, the Fed prohibited nonbank lending to banks.

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Definitions:

Payables Manager

A financial professional responsible for managing a company's accounts payable, ensuring timely payment of invoices and maintaining vendor relationships.

Accounts Receivable Balance

The overall financial dues that customers owe a business for the receipt of goods or services which are unpaid.

Finance Charges

The cost of borrowing money, including interest and other fees, that a lender charges a borrower for the use of funds.

Accounts Receivable Period

The average number of days it takes a company to collect payment after a sale has been made.