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5. Money market instruments Which of the following accurately explains why the Federal Reserve established a price floor in the federal funds market? O
5. Money market instruments Which of the following accurately explains why the Federal Reserve established a price floor in the federal funds market? O To minimize systemic risk O To minimize default risk To guarantee that all borrowers and lenders in the federal funds market have reserves on deposit at the Fed To guarantee that interest rates do not fall so low as to cause deflation Short-term, unsecured debt, which matures in less than 270 days, issued by established corporations is called are large CDs sold in lots of $1 million each with interest rates determined by negotiations between banks and their depositors. are bank accounts denominated in a currency other than the currency of the country in which the depository institution resides
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