Home › CIBN Banking Exams › Economics › Monetary Policy › In March 2020 the Fed responded to the pandemic …
In March 2020 the Fed responded to the pandemic recession by reducing the federal funds:
AReach
BRange
CRatio
DRate
Answer & Solution
Correct answer: D. Rate
1. It also expanded its lending and bond buying.
2. The first move was on the price of overnight money.
3. It reduced the federal funds rate.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
Related questions
In the 1987 stock market crash, share values fell in a single day by about:Unlike most central banks, the Federal Reserve is described in structure as:Beyond policy, the central bank makes sure enough coins and notes circulate, meeting publiBesides open market operations, the Fed can change the discount rate and the reserve:An economy in recession with output below potential GDP calls for policy that is:Policy that raises interest rates and reduces borrowing is described as:Policy that lowers interest rates and stimulates borrowing is described as:Decisions about open market operations are made by the Federal Open Market: