The last transaction in the federal funds market occurred in 2008 because Topic: Money-Creating Transactions of a Commercial Bank
A)the Federal Reserve closed down the federal funds market.
B)in response to the financial crisis, the Federal Reserve raised the reserve ratio to 100 percent.
C)the federal funds rate has been set too high.
D)since the financial crisis, nearly every bank has significant excess reserves.Topic: Money-Creating Transactions of a Commercial Bank

Question

Quizplus · Accepted Answer

Since the financial crisis, banks have held significant excess reserves, reducing the need for borrowing in the federal funds market.

The Last Transaction in the Federal Funds Market Occurred in 2008