One of the Basic Changes That the Fed Has Established

question 36

True/False

One of the basic changes that the Fed has established as a result of the financial crisis is that it now lends to other financial institutions that are not banks, such as the insurance giant AIG.

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Definitions:

Long-Term Contracts

Agreements between parties that last over an extended period, often used to secure pricing, terms, and conditions.

Federal Deposit Insurance Corporation

A U.S. government agency that protects depositors in the event of a bank failure by insuring deposits up to a certain limit.

Money Supply

The total amount of money available in an economy at a specific time.

Tax Increases

Government-imposed hikes in taxes intended to raise additional revenue for public spending or to influence economic behavior.