1. Among the three tools that Fed use to perform monetary policy, which are the most popular one?

Select one:

a. Reserve requirement

b. Discount window

c. Open Market operation

d. only B & C of the above

e. All of the above

2. Which of the following statement is true regarding the lender of last resort

Select one:

a. Under the current pandemic period, the Fed is taking more effort to serve as lender as last resort by purchasing commercial papers

b. Under the current pandemic period, the Fed is injecting money into REPO market to help as lender of last resort.

c. Federal Reserve Systems dont usually encourage banks to borrow from them as they are the lender of last resort

d. All of the above

e. Only A and B above

3. Federal funds rate

Select one:

a. is the borrowing rate for banks among each other

b. borrowing rate of banks that have a shortfall of reserves, but lending rate for banks that have an excess of reserves .

c. cannot be decided by the Federal Reserve BOG.

d. all of the above.