Which of the Following Actions Did the Federal Reserve Take

question 28

Multiple Choice

Which of the following actions did the Federal Reserve take during the financial crisis of 2007-2008?

• A)It gave a directive to change the management of the banks that had to be bailed out.
• B)It bought troubled assets from banks and lent money at the discount window to nonbanks.
• C)It compensated all investors who lost money in the crisis.
• D)It kept the discount rates high to discourage borrowing.
• E)It issued a directive to keep all information regarding derivative products confidential.

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Definitions:

Monad

In Leibniz, the simple immaterial substances that are the ultimate constituents of all reality. God, the one uncreated monad, created all of the others as self-enclosed (“windowless”), predetermined entities.

Monads

In philosophy, especially in Leibniz's metaphysics, indivisible and simple entities that are the ultimate units of reality.

Leibniz

Gottfried Wilhelm Leibniz was a German polymath and philosopher best known for his development of differential and integral calculus independently of Isaac Newton and for his optimistic philosophical system.

Blind

Lacking the ability to see due to physiological or neurological factors affecting the eyes or visual pathways.