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What is likely to happen if the Fed's forward guidance is optimistic about the economy's prospects? Multiple choice question. Lenders will be unlikely to lend.
What is likely to happen if the Fed's forward guidance is optimistic about the economy's prospects? Multiple choice question. Lenders will be unlikely to lend. The total volume of money in checkable deposits at banks and thrifts will increase. The dollar volume of old loans being paid off will be greater than new loans being made. The money supply will decrease.Which of the following statements accurately describes the federal funds rate? Multiple select question. The effective federal funds rate is always within the federal funds target range. The Fed can lower the effective federal funds rate by lowering the IORB and ON RRP rates. The Fed keeps the target federal funds range confidential. The Fed sets a target federal funds range with a difference between the upper and lower limit of two percent. The federal funds market is unregulated
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