All of the following impact the effectiveness of Fed policy except
A)How well the Treasury follows the Fed's directions for releasing money.
B)The willingness or reluctance of banks to lend funds.
C)Global sources of money.
D)The responsiveness of interest rates to changes in the money supply.

Question

Quizplus · Accepted Answer

While coordination with the Treasury can help facilitate Fed policy goals, the Treasury's compliance is not a determining factor in the effectiveness of Fed policy. The willingness of banks to lend, global sources of money, and the responsiveness of interest rates are all important factors that can impact the effectiveness of Fed policy.

All of the Following Impact the Effectiveness of Fed Policy