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The Movement Away from Bank Lending Towards Asset-Backed Securities

Question 73

Multiple Choice

The movement away from bank lending towards asset-backed securities:


A) Has increased the importance of the bank-lending channel of monetary policy
B) Has eliminated the bank-lending channel as a mechanism for monetary policy
C) Has not affected the importance of the bank-lending channel
D) Will require the FOMC to rethink the quantitative impact of changing the target federal funds rate

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