What Was the Rationale for the Fed Lending Billions of Dollars

question 83

Multiple Choice

What was the rationale for the Fed lending billions of dollars to the insurance company American International Group (AIG) ?

• A) The Fed knew it would receive a high return on the loan.
• B) The Fed was following a long-time precedent in rescuing top insurance companies.
• C) If AIG collapsed,the insurance industry would as well.
• D) The money AIG owed to banks posed a systemic risk.

---

Definitions:

Immunoglobulin

A type of antibody produced by the immune system to fight infections and diseases.

Allergic Reaction

An immune response to a substance (allergen) that results in symptoms such as itching, swelling, and difficulty breathing.

IgE

Immunoglobulin E, a class of antibodies produced by the immune system in response to allergens.

Naturally Acquired Active

refers to immunity developed through exposure to the natural occurrence of a pathogen, leading to the formation of memory cells and antibodies without vaccination.