Which of the Following Actions Did the Federal Reserve Take

question 49

Multiple Choice

Which of the following actions did the Federal Reserve take during the most recent financial crisis between 2000 and 2008?

• A)It gave a directive to change the management of the banks that had to be bailed out.
• B)It compensated all investors who lost money in the crisis.
• C)It relaxed some of the regulations that had previously bound the financial industry.
• D)It kept the interest rates low to stimulate the economy.
• E)It issued a directive to keep all information regarding derivative products confidential.

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Definitions:

Oil Reserves

Quantified estimates of the amount of crude oil located in a specific economic region that can be recovered and sold under current economic and technological conditions.

Hostile Takeovers

Attempts by a company to acquire another company against the wishes of the target company's management and board of directors.

Poison Pills

Strategies used by companies to deter unwanted takeover bids by making the company less attractive to the potential acquirer.

Golden Parachutes

Payments made to executives who are forced out when a merger takes place.