During the Financial Crisis of 2008-2009, the Fed's Actions to Supply

question 173

Multiple Choice

During the financial crisis of 2008-2009, the Fed's actions to supply reserves to the banking system was an attempt to

• A) limit the troubling rise in asset prices.
• B) increase the public's belief that their deposits were insured.
• C) help the U.S. Treasury finance the TARP.
• D) make certain that banks had enough liquidity to avoid collapse.

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Definitions:

Grace Period

A period after a due date during which a financial obligation may be met without penalty or late fees being incurred.

Credit Cards

Means of access to preapproved lines of credit granted by a bank or finance company.

Debit Cards

Bank cards that allow users to make transactions by deducting money directly from their checking account.