During the financial crisis,the Fed introduced three new policy tools connected with bank reserve accounts.Which of the following is NOT one of those three new tools?
A) interest on reserve balances
B) open market operations
C) overnight reserve repurchase agreement facility
D) term deposit facility

Question

Quizplus · Accepted Answer

Open market operations have been a traditional policy tool of the Fed and were not introduced during the financial crisis. The three new tools introduced were interest on reserve balances, overnight reserve repurchase agreement facility, and term deposit facility.

During the Financial Crisis,the Fed Introduced Three New Policy Tools