In 2002, the Federal Reserve Changed Its Discount Lending Procedures

question 70

Multiple Choice

 In 2002, the Federal Reserve changed its discount lending procedures. Which of the following statements is correct? ?

• A) For most of its history the Federal Reserve has lent reserve to banks at a rate equal to the target federal funds rate; after 2002 the rate would be below the target federal funds rate.?
• B) The changes made in 2002 have made it more difficult for the Fed to meet its interest-rate stability objective.?
• C) Before 2002 the Fed discouraged banks from borrowing and actually created volatility in the market for reserves.?
• D) The Fed now controls the quantity of credit extended as well as its price.

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Definitions:

Forensic Evaluations

The application of psychological assessment methods to answer legal questions or issues.

Ethical Issues

Ethical issues pertain to moral dilemmas and considerations that arise in the conduct of professional practices, highlighting the importance of principles such as honesty, respect, and fairness.

Informed Consent

Principle that individuals being assessed should give their permission for the assessment after they are given information concerning such items as the nature and purposes of the assessment, fees, involvement by others in the assessment process (e.g., teachers, therapists), and the limits of confidentiality.

Justifiable Deception

Situations or contexts in which misleading or lying is considered acceptable or warranted based on overarching ethical or moral standards.