1. Each of the following is a transmission channel of monetary policy, except:
A. The balance-sheet channel B. The tax-impact channel C. The asset-price channel D. The exchange-rate channel.
2. If the target federal funds rate reaches zero the FOMC:
A. Must stop purchasing securities since they cannot lower nominal rates below zero B. Would likely shift their focus to purchasing longer-term securities C. Would likely raise the required reserve rate D. Would likely raise the discount rate