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:

Lingual Frenulum

A fold of mucous membrane in the midline of the underside of the tongue, connecting the tongue to the floor of the mouth.

Oral Cavity

The mouth, including the lips, teeth, gums, and the initial portion of the alimentary canal, playing a key role in speech, breathing, and digestion.

Tongue

The tongue is a muscular organ in the mouth that is essential for tasting, masticating (chewing) food, and aiding in the process of swallowing.

Dentition

The arrangement or condition of the teeth within the mouth.