"As a result of policy actions taken by the Fed since 2008, it (the Fed) can no longer expect to affect the federal funds rate through traditional open market operations to alter the overall amount of excess reserves in the banking system. This is because"

Respuesta :

Answer and Explanation:

As a result of policy actions taken by the Fed since 2008, the Federal Reserve were able to increase the spending of consumer by forcing a kind of monetary policy that affects all and sundry, this they achieved by allowing everyone to lend money money easily.

By making more money compulsorily available in the hands of consumers, the economy experienced growth through consumer's spending.

Federal funds rate can no longer be affected through the traditional open market operations that seek to alter the overall amount of excess reserves in the banking system.

Answer:The policy financial status has a way of strengthening the open market and hitherto make for an indelible profit making venture.

Explanation: It gives an indication that all the policies have direct impact upon the flows of the market.