Recent financial innovation makes the Federal Reserve's job of conducting monetary policy
A)easier,since the Fed now knows what to consider money.
B)more difficult,since the Fed now knows what to consider money.
C)easier,since the Fed no longer knows what to consider money.
D)more difficult,since the Fed no longer knows what to consider money.

Question

Quizplus · Accepted Answer

Recent financial innovation has made it more difficult for the Fed to determine what should be considered as money, as new forms of financial instruments and assets have blurred the traditional definitions of money. This makes it harder for the Fed to conduct monetary policy effectively, as they may struggle to determine the appropriate levels of money supply and interest rates.

Recent Financial Innovation Makes the Federal Reserve's Job of Conducting