In December 2008, the Federal Reserve Announced That It Would

question 73

Multiple Choice

In December 2008, the Federal Reserve announced that it would take extraordinary measures to address the financial crisis in the economy. These measures include all of the following except

• A) buying mortgage-backed securities.
• B) buying long-term Treasury bills.
• C) creating other new credit facilities to make credit more easily available to households and small businesses.
• D) lowering the reserve requirement to encourage banks to create loans.

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Definitions:

Low-cost Strategy

A competitive strategy focusing on offering products or services at the lowest possible price point to gain market share.

Technological Synergy

The heightened effectiveness or efficiency achieved when various technological systems operate together in coordination.

Profitable New Markets

Emerging or unexplored market segments that offer the potential for significant financial returns.

Totally New Products

Products that are innovative and provide unique benefits or serve new markets, distinct from upgrades or revisions of existing offerings.