Question: please do and explain Question 1 (1 point) Why the the Fed abandon its traditional approach for setting the fed funds rate? C] Fed no

please do and explain

please do and explain Question 1 (1 point) Why the the Fed

Question 1 (1 point) Why the the Fed abandon its traditional approach for setting the fed funds rate? C] Fed no longer wanted to pay the interest on reserves C] There was a stigma associated with discount lending from the Fed C] There was a growing number of shadow banks that were not receiving the interest rate on reserves C] Fed's large-scale asset purchases largely expanded the supply of reserves Question 2 (1 point) ~/ Saved Considering the traditional approach for setting the fed funds rate, why did the interest rate on reserves (IOR) serve as a lower-bound for the fed funds rate? Q IOR was not a lower bound for the fed funds rate Q) Nobody was willing to borrow reserves at a rate below IOR O Nobody was willing to lend reserves at a rate below IOR O The Fed prohibited borrowing at a lower rate

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