Which of the Following Is True

Multiple Choice

Which of the following is true?

A) The Fed's new openness has led to more direct control over the fed funds rate and a smaller volume of open market operation necessary to hit the targeted fed funds rate.
B) Expectations of market participants cause the fed funds rate to move in the desired direction before the Fed even intervenes.
C) With the new Fed openness, time lags in the monetary policy process have been reduced.
D) All of the above are true.