Which of the Following Measures Did the Fed Take During

question 143

Multiple Choice

Which of the following measures did the Fed take during the uncertain days following the terrorist attacks of September 11,2001?

• A)The Fed tightened regulations in the financial markets.
• B)The Fed increased the discount rate.
• C)The Fed bought all the government securities up for sale.
• D)The Fed increased the reserve requirement ratio.
• E)The Fed demanded interest on the bank reserves held at the Fed.

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Definitions:

Indirect Approach

A method of communication or argumentation that is not straightforward, often used to soften the delivery of a message.

Skeptical Audience

A group of people who may doubt or question the validity of the information presented to them.

Euphemism

A mild or indirect word or expression substituted for one considered to be too harsh or blunt when referring to something unpleasant or embarrassing.

Negative Connotations

The association of words or phrases with negative feelings, attitudes, or judgments.