Just Prior to the Year 2000, the Fed Was Concerned

question 139

Multiple Choice

Just prior to the year 2000, the Fed was concerned that people would make larger than normal bank withdrawals out of fear of what was called the "Y2K computer bug." Fearing that this would disrupt the banking system, the Fed wanted to use a defensive action to prevent any such disruption. This would take the form of open market bond:

• A)sales that would prevent the federal funds rate from increasing.
• B)sales that would prevent the federal funds rate from decreasing.
• C)purchases that would prevent the federal funds rate from increasing.
• D)purchases that would prevent the federal funds rate from decreasing.

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Definitions:

Personal Narratives

Assessment procedure that asks individuals to provide autobiographical descriptions of important events in their lives.

Themes

Central topics or ideas that recur in various forms across a piece of literature, art, or study, providing deep insight.

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind that is derived from ancestral memory and experience shared by all humans.

Carl Jung

Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his concepts of the collective unconscious and archetypes.