Recall the Application About How the Fed Kept the U

question 100

Multiple Choice

Recall the Application about how the Fed kept the U.S. financial system in operation following the attacks of September 11, 2001, to answer the following question(s) . To help prevent financial firms from defaulting on their debts, the Fed took several steps to provide additional funds to the financial system, including allowing banks to borrow more, increasing the difference between the credits and debits it extended while serving as a clearinghouse for checks, purchasing government securities, and providing dollars to foreign central banks. Together, these actions increased the credit extended by the Fed by over $90 billion.
-According to this Application, following the attacks of September 11, 2001, the Fed effectively put an additional $20 billion into the banking system by increasing the difference between the credits and debits it extended while serving as a clearinghouse for checks. The difference between the credits and debits extended by the Federal Reserve is called the

• A) Federal Reserve balance sheet.
• B) federal funds rate.
• C) Federal Reserve float.
• D) federal deficit.

---

Definitions:

Developer

A professional who creates and maintains software or applications, skilled in programming languages and software development methodologies.

Open Systems

Computing products that work together by using the same operating system with compatible software on all the computers that interact in an organization.

Computing Products

Electronic devices and software used for processing, storing, and communicating information.

Concept

An abstract idea or general notion representing something, often forming the basis for developing theories or models.