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The Financial Crisis of 2007-2008 changed the landscape for monetary policy. One major change was that reserves at the Fed
increased significantly, which made some traditional tools of monetary policy less effective. Which tool of monetary policy was
created in 2008 and has since become very important for monetary policy?
Macmillan Learning
The new tool of monetary policy is:
Interest rate on reserve balances (IORB)
The reserve ratio
Open market operations
O The discount rate

Answer 1

Interest rate on reserve balances (IORB)

Step-by-step explanation:

this was the new policy introduced in 2008 which allows the Fed to influence leading trends by reducing rates