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​Which of the following policies is NOT in the Fed's monetary toolbox?

-a.
​Increasing the quantity of reserves
b.
​Issuing a bank run
c.
​Buying government bonds
d.
​Lending reserves to banks

User Rubik
by
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1 Answer

2 votes

The policy NOT in the Fed's monetary toolbox is issuing a bank run. A bank run (run on the bank) happens when a large number of people withdraw their money from a bank simultaneously, because they believe the bank may cease to function in the near future.

User Mamuz
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