Since 1998, Interest Rate Variability in the Fed Funds Market

question 80

Multiple Choice

Since 1998, interest rate variability in the fed funds market has decreased because

• A)fewer institutions were allowed to participate in the fed funds market.
• B)of the introduction of lagged reserve accounting.
• C)new securities were approved that participants can use instead of fed funds to meet liquidity needs.
• D)of the introduction of contemporaneous reserve accounting.
• E)more participants were allowed to enter the fed funds market.

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Definitions:

Electromagnetic Field

A physical field produced by electrically charged objects. It affects the behavior of charged objects in the vicinity of the field.

Inductive Proximity Sensor

A type of sensor that is used to detect the presence of metallic objects without physical contact by utilizing the principles of induction.

Light Beam

A stream of light particles (photons) traveling in the same direction, used in various applications including communication and measurement.