The Federal Reserve implemented this monetary policy tool in 2008 that is "intended to eliminate effectively the implicit tax th
at reserve requirements used to impose on depository institutions." A) Discount Rate B) Reserve Requirement C) Open market operations D) Interest rate on required reserves
Monetary policy is defined as the policy employed by the central bank in order to stabilize the economy and bring it to equilibrium by either controlling the supply of money in the market or by altering the interest rates.
As per the question, federal reserve implemented the monetary policy that 'intends to eliminate....institutions' would be determining the 'interest rate on required reserves'. <em>This determination of interest rates by the central bank assists to control the interest rates on required or excess reserves(as a part of the monetary policy) to maintain the equilibrium of the economy.</em> Thus, <u>option D</u> is the correct answer.
the test that looks at the defendants mental health which argues that they should be held accountable for breaking the law due to their mental capacity of not allowing them to have control of what they doing hence they are aware of their actions or doings.
