These are Money and Banking True / False Questions. Please answer and provide explanation 1. During the Great Recession

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answerhappygod
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These are Money and Banking True / False Questions. Please answer and provide explanation 1. During the Great Recession

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These are Money and Banking True / False Questions. Please
answer and provide explanation

1. During the Great Recession of 2007-2009, the Federal Reserve’s
conventional monetary policy was “running out of ammunition” to
pump prime the weakening U.S. economy. Why? Because short-term
interest rates were driven down close to zero. Therefore, the Fed
resorted to nonconventional monetary policy drive down longer-term
interest rates. (T/F)
2. Open market operations are the most important monetary tool of
the Federal Reserve because they are the primary determinant of
changes in the checkable-deposit (money) multiplier.
(T/F)
3. If the banking system has a large amount of reserves, many banks
will have excess reserves to lend and the federal funds rate will
likely fall; if the level of reserves is low, few banks will have
excess reserves to lend and the federal funds rate will likely
rise. (T/F)
4. The September 11, 2001 terrorist attack against the United
States resulted in the deaths of many Americans and uncertainty
about our economy. Some individuals, perhaps fearful of further
attacks, withdrew money from their banks. To prevent a massive run
on banks, the Federal Reserve announced programs to provided
additional liquidity to financial firms and individuals throughout
the nation. (T/F)
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