Which of the following represents one of the new monetary tools that the Fed has developed as a result of the recent financial crisis?
A)In the last two and a half decades,the Fed has become much less transparent about its actions.
B)The Fed is now responsible for monetary and fiscal policy.
C)The Fed has started buying private securities and making loans to private firms.
D)The Fed has become part of the Department of Treasury.
E)None of these

Question

Quizplus · Accepted Answer

The Fed has developed several new monetary tools as a response to the recent financial crisis, including buying private securities and making loans to private firms. Option A is incorrect as the Fed has become more transparent over the years. Option B is incorrect as the Fed only has control over monetary policy, not fiscal policy. Option D is incorrect as the Fed is an independent agency and not part of the Department of Treasury.

Which of the Following Represents One of the New Monetary