Which of the Following Statements About the Penn Central Railroad

question 3

Multiple Choice

Which of the following statements about the Penn Central Railroad crisis is NOT true?

• A)The crisis resulted in a large decline in commercial paper lending.
• B)The crisis was ended by the Fed making credit available to commercial banks.
• C)During the crisis, banks made loans to companies that would normally have used the commercial paper market.
• D)The Fed's charter greatly restricted the number of banks to which it could make loans.

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Definitions:

Serotonin

Serotonin is a neurotransmitter that plays a key role in regulating mood, sleep, appetite, and pain.

Anterior Cingulate Cortex

A part of the brain located in the frontal lobe, involved in a wide range of cognitive and emotional functions, including decision-making, empathy, impulse control, and emotion.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension.

HPA Axis

The hypothalamic-pituitary-adrenal axis, a complex set of interactions between the hypothalamus, pituitary gland, and adrenal glands, involved in the stress response.