Before the financial crises of 2007-2009, what were the monetary policy tools that the Fed relied on? (Select all that apply) 1. Open market operations 2. Term deposit facility 3. Overnight repurchase agreements 4. Discount window

Before the financial crises of 2007-2009, what were the monetary policy tools that the Fed relied on? (Select all that apply) 1. Open market operations 2. Term deposit facility 3. Overnight repurchase agreements 4. Discount window

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 5QR

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Question

Before the financial crises of 2007-2009, what were the monetary policy tools that the Fed relied on? (Select all that apply)

1. Open market operations

2. Term deposit facility

3. Overnight repurchase agreements

4. Discount window

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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