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One Historic Consequence of the Policy of Supplying Reserves According

Question 37

Multiple Choice

One historic consequence of the policy of supplying reserves according to movements in the fed funds rate was that the Fed did not concern itself ________.


A) with the behavior of the level of reserves, or of the monetary base and other monetary aggregates, which expanded in an erratic way.
B) with the behavior of discount rates, or of the discount window, and other interest rates, which changed in erratic ways.
C) with the behavior of exchange rates, or of the dollar and other foreign currencies, which moved in erratic fashions.
D) None of these

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