Banks "create" money whenever they accept a deposit. True False In their December 2016 monetary policy statement, the Federal Reserve decided to decrease their benchmark interest rate increase their benchmark interest rate make no change to their benchmark interest rate expand open market operations The Fed uses monetary policy to directly affect the amount of money firms and households are willing to borrow. True False Which of the following is the main policy tool of the Federal Reserve? open Market Operations Reserve Requirement Discount Rates Central Banking Answer according to the article "End of Illusions." If debt issued by Fannie and Freddie was not backed by the government, why did investors believe Fannie and Freddie wouldn't fail? They had large amounts of operating capital They felt the government would not let Fannie and Freddie fail They ignored S&P's poor credit rating of Fannie and Freddie because they were getting such high returns All of the above