Worries About the Zero Bound from 2002 to 2005 Led

question 41

Multiple Choice

Worries about the zero bound from 2002 to 2005 led the Fed to

• A)increase reserve requirements on banks.
• B)make more discount loans than usual.
• C)tighten monetary policy.
• D)keep the Federal funds rate below the inflation rate.

---

Definitions:

Sale

The act of selling goods or services in exchange for money or other compensation.

Revenue

The total income generated by a company from its business activities, before any expenses are deducted.

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.