After reading the article. complete the following: 1. Prior to 2008, the Federal Reserve moved the federal funds rate (FFR) higher and lower using a. the interest on excess reserves [lOER]. b. the overnight reverse repurchase agreement {0N RRP) facility. c. open market operations. d. the interest on required reserves (IORR). 2. In the \"ample reserves\" framework of monetary policy, a. relatively small changes in the supply of reserves by the Federal Reserve can shift the FFR up and down. b. relatively small changes in the FFR by the Federal Reserve can shift the supply of reserves up and down. c. the Federal Reserve moves the FFR into the target range primarily by adjusting the IOER rate. cl. the Federal Reserve does not target the FFR. 3. Thinking in terms of a supply and demand graph, how did the Financial Crisis move the supply of reserves? a. The Financial Crisis moved the supply curve left along the downward sioping demand curve. b. The Financial Crisis moved the supply curve right into the at portion of the demand curve. c. The Financial Crisis moved the demand curve upward along the downward sloping supply curve. cl. The Financiai Crisis moved the demand curve downward into the flat portion of the supply curve. 4. How does arbitrage ensure that the FFR does not drop too far below the [OER rate? a. Banks have an incentive to borrow at the FFR and deposit at the ON RRP rate. b. Banks have an incentive to borrow at the iOER rate and deposit at the FFR. c. Banks have an incentive to borrow at the ON RRP rate and deposit at the FFR. d. Banks have an incentive to borrow at the FFR and deposit at the IOER rate. 5. Adjustments in the stance of monetary poiicy are communicated as a change in which of the following? a. FFR b. IORR c. IOER cl. 0N RRP