New Tools of Monetary Policy Created in 2008 Included

question 86

Multiple Choice

New tools of monetary policy created in 2008 included

• A)restoration of individual income tax rates to their pre-2001 levels.
• B)elimination of the requirement that banks hold reserves against deposits.
• C)open market purchases and sales of short-term U.S. government securities.
• D)Fed purchase of corporate paper and a new discount window for investment banks.

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Definitions:

Economic Duress

Refers to a situation where one party compels another to agree to a contract under threats or pressure that deprive the victim of their free will.

Misrepresentations

False statements or lies that can affect contracts and agreements, leading to possible legal action for rescission or damages.

Economic Duress

A situation where a person or entity is forced to enter into an agreement or transaction due to financial pressure or threats.

Disproportionately Small

Referring to an amount or share that is significantly less than what is considered fair or equal in comparison to others.