https://elearning.ggu.edu/pluginfile.php/2388067/question/questiontext/690581/5/2866394/Teaching%20the%20Linkage%20Between%20Banks%20and%20the%20Fed_%20R.I.P.%20Money%20Multiplier.pdf Use this document to answer questions 5-6 Until 2008, the primary monetary policy tool was open-market
Question:
https://elearning.ggu.edu/pluginfile.php/2388067/question/questiontext/690581/5/2866394/Teaching%20the%20Linkage%20Between%20Banks%20and%20the%20Fed_%20R.I.P.%20Money%20Multiplier.pdf
Use this document to answer questions 5-6
Until 2008, the primary monetary policy tool was open-market operations. What replaced open-market operations as the Fed's primary monetary policy tool?
Select one:
A.U.S. Treasury Security Rate
B.reserve balances
C.monetary transmission
D.reserve requirements
E.
interest on reserve balances (IORB) rate
Clear my choice
Question 6Not yet answeredPoints out of 1.00Flag questionQuestion text
This is one of the reasons given for the irrelevance of the Money Multiplier:
Select one:
A.The Fed eliminated reserve requirements in March 2020
B.Commercial banks no longer fall under Federal Reserve jurisdiction
C.Banks do not make loans with profits, risks, and regulatory considerations firmly in mind
D.Banking reserves are scarce
Expert Answer:
