Which of the following statements is most correct?
A. The ECB and FOMC are equally successful at keeping the target rate in range.
B. The ECB is more successful at keeping the market rate closer to the target rate than the FOMC until the Fed began paying interest on reserves .
C. The FOMC is more successful at keeping the market rate closer to the target rate than the ECB until the Fed began paying interest on reserves.
D. The ECB seldom has the market rate close to the target rate.
Answer: B
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A) increase the intensity of economic fluctuations B) lead to hyperinflation C) smooth the rate of growth of the economy over time D) lower output below its potential level
The maximum money that can be created by the entire banking system is equal to a multiple of its excess reserves
a. True b. False Indicate whether the statement is true or false