ʺAs Part of the Financial Crisis Bailout Plan in 2008

question 384

Multiple Choice

ʺAs part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans.ʺ This is an example of

• A) the Federal Reserve taking actions that are not at the margin.
• B) opportunity costs.
• C) a normative statement.
• D) a positive statement.

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Definitions:

Liable

Legally responsible or obligated to provide compensation for harm, loss, or damage caused.

Irrevocable

Unable to be changed, reversed, or recovered; final.

Competing

Engaging in a rivalry or competition with others in an attempt to achieve a specific goal, often referring to businesses vying in the same market or industry.

Terminated

Refers to the ending or discontinuation of something, such as employment, a contract, or a project.