When the Federal Reserve Began Paying Interest on Excess Reserves,the

question 336

Multiple Choice

When the Federal Reserve began paying interest on excess reserves,the effect on monetary policy was

• A)making open market operations less effective.
• B)adding a new tool to monetary policy.
• C)reducing the effect of a change in reserve requirements.
• D)eliminated the need for the Federal Funds Market.

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Definitions:

Culture

The social behavior and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Stable

Refers to a situation or condition that is not significantly changing, showing little variability, and is dependable over time.

Societal Expectations

The standards and norms that society holds for individuals and organizations, influencing their behavior and actions.

Corporations

Legal entities recognized under the law, able to own property, incur debt, sue and be sued, and conduct business activities.