In September 2012 the Fed Announced That Because of Weak

question 25

Multiple Choice

In September 2012 the Fed announced that because of weak labor market conditions, it would ________ $40 billion of mortgage backed securities per month. Critics of the action said that banks have ________ excessive reserves so the action would be futile.

• A) sell; huge amounts of
• B) buy; huge amounts of
• C) buy; very little
• D) sell; very little

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Definitions:

Hiroshima

A Japanese city known for being the target of the first atomic bomb used in warfare, dropped by the United States on August 6, 1945, during World War II.

Soviet Union

A socialist state that existed from 1922 to 1991, composed of multiple subnational Soviet republics, and was one of the world's two superpowers during the Cold War, alongside the United States.

Caucasian Race-Equal Privileges

The concept that individuals identified as belonging to the Caucasian race should have the same rights and opportunities as those of other races.

Japanese-Americans

Americans of Japanese ancestry, many of whom were subject to internment during World War II.