In 2008,the Fed Created a New Policy Tool Called

question 70

Multiple Choice

In 2008,the Fed created a new policy tool called

• A)quantitative easing,which allowed the Fed to buy private securities as well as government securities.
• B)quantitative easing,which required the Fed to pay interest on required reserves.
• C)open market operations,which required the Fed to buy securities from only the federal government.
• D)federal funds zero-rate,which required the Fed to lower the rate to near zero percent.
• E)interest rate reductions,which allowed the Fed to lower interest rates paid to banks.

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A unit of mass in the metric system, equivalent to one thousand grams.

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