The Monetary Control Act of 1980:
A) extended the Fed's authority to impose required-reserve ratios on all depository institutions.
B) excluded the required-reserve ratios as an instrument of short-term policy.
C) provided the Fed with the authority to use open market operations.
D) closed or sold ailing savings and loan institutions.

Question

Quizplus · Accepted Answer

The Monetary Control Act of 1980 extended the Federal Reserve's authority to impose required-reserve ratios on all depository institutions, not just member banks, thereby broadening its regulatory reach.