During the Financial Crisis of 2007-2009, Why Did the Federal

question 134

Multiple Choice

During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?

• A)the federal funds rate had already been increased as much as possible 
• B)the discount rate had already been increased as much as possible 
• C)the federal funds rate had already been reduced to zero 
• D)the discount rate had already been reduced to zero

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Definitions:

Direct Evidence

Evidence that directly proves a fact without the need for any inference or presumption, such as testimony from a witness about what they personally observed.

Circumstantial Evidence

Evidence that relies on an inference to connect it to a conclusion of fact, such as a fingerprint at the scene of a crime, rather than direct evidence like eyewitness testimony.

Existence

The state or fact of being real, present, or in operation.

Circumstantial Evidence

Indirect evidence that implies a fact but does not directly prove it.