Which of the following statements is most accurate about the Fed's zero interest rate policy (ZIRP)? Multiple Choice The Fed has abandoned the ZIRP, recognizing the need to reduce nominal interest rates to below zero. In an effort to end the ZIRP, the Fed prohibited nonbank lending to banks. It ended in late 2015, with the Fed increasing the IOER and engaging in reverse repo transactions. As of 2016, the ZIRP is being pursued by the Fed.
Which of the following statements is most accurate about the Fed's zero interest rate policy (ZIRP)? Multiple Choice The Fed has abandoned the ZIRP, recognizing the need to reduce nominal interest rates to below zero. In an effort to end the ZIRP, the Fed prohibited nonbank lending to banks. It ended in late 2015, with the Fed increasing the IOER and engaging in reverse repo transactions. As of 2016, the ZIRP is being pursued by the Fed.
Chapter26: Monetary Policy
Section: Chapter Questions
Problem 3SQ
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