Which of the following is not a result of policy actions taken by the Fed since the ﬁnancial crisis in 2008?
A) a massive expansion of excess reserves in the banking system
B) The federal funds rate has hovered near zero.
C) very little activity in the federal funds market
D) a very volatile federal funds rate

Question

Quizplus · Accepted Answer

The policy actions taken by the Fed since the financial crisis have led to a massive expansion of excess reserves in the banking system, the federal funds rate has hovered near zero, and very little activity in the federal funds market. However, these actions have not led to a very volatile federal funds rate. In fact, the Fed's actions have helped to stabilize interest rates and reduce volatility in markets.

Which of the Following Is Not a Result of Policy