Which of the following monetary policy tools was introduced in 2008?

Question

Quizplus · Accepted Answer

Interest on reserves held at the Fed was introduced as a monetary policy tool in 2008. This tool allows the Fed to pay banks interest for the reserves they hold, which can incentivize them to hold onto those reserves instead of lending them out and can help control inflation. The discount rate, federal funds rate, and open-market operations were all established monetary policy tools prior to 2008.

Which of the Following Monetary Policy Tools Was Introduced in 2008