When the Economy Began a Downturn in 2007, One That

question 28

Multiple Choice

When the economy began a downturn in 2007, one that rapidly worsened when the global financial system came to the brink of collapse in 2008, the Federal Reserve significantly lowered the ______________ in order to boost the economy, eventually lowering it to nearly rock bottom before pushing it upwards again in 2018.

• A) federal funds rate (i.e., the interest rate charged by one bank to another)
• B) discount rate (i.e., the interest it charges on loans it extends to member banks)
• C) reserve requirement (i.e., the amount of cash and securities that every bank must have to cover withdrawals)
• D) open-market rate (i.e., the interest it charges on loans it extends to member banks)

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Definitions:

Mutually Beneficial

Actions or agreements that provide benefits to all parties involved.

Specialize

To focus on a specific area of study, work, or activity, developing expertise and efficiency in that particular area.

Labor-Intensive

Describes industries or processes that require a large amount of labor to produce goods or services, as opposed to using a large amount of capital or machinery.

Digital Cameras

Devices that capture photographs in a digital format, allowing for easy storage, viewing, and manipulation on electronic devices.