What was Federal Reserve's monetary policy called ZIRP? Multiple choice question. A monetary policy in which the Fed set nominal interest rates at or near 0% in order to stimulate the economy An open-market operation in which bonds were sold by the Fed in order to decrease the quantity of excess reserves held by commercial banks An open-market operation in which bonds were purchased by the Fed in order to increase the quantity of reserves held by commercial banks A condition in which the Fed's injection of more reserves into the banking system had little or no positive impact