Which monetary policy channel focuses on the ability of money market mutual funds to purchase commercial paper issued by firms?
A) interest rate channel
B) commercial bank lending channel
C) shadow bank lending channel
D) balance sheet channel

Question

Quizplus · Accepted Answer

The shadow bank lending channel focuses on the ability of non-bank financial institutions, such as money market mutual funds, to provide financing to firms through the purchase of commercial paper.

Which Monetary Policy Channel Focuses on the Ability of Money