Just Prior to the Year 2000, the Fed Was Concerned

question 164

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." The Fed feared that this might 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:

Lowell Mill

Factories in the 19th-century United States, located in Lowell, Massachusetts, known for employing young women, known as "Lowell Mill Girls," under strict conditions to produce textile products.

Moral Wrong

An action or behavior that is considered unethical or immoral based on societal norms or personal ethics.

Economic Revolution

A radical change in economic practices, policies, and systems, often resulting in significant shifts in wealth and power structures.