Which Government Action Is Usually Tried First in a Financial

question 28

Multiple Choice

Which government action is usually tried first in a financial crisis?

• A) changing the reserve requirement
• B) bailout
• C) lender of last resort
• D) none of the above

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Definitions:

Consumer Credit

A type of credit granted to consumers to finance personal purchases.

Retail Credit

An arrangement where retailers offer direct credit facilities to their customers for the purchase of goods and services.

Work-in-progress

Refers to the intermediate goods or partially finished goods that are in the process of production.

Raw Materials

Basic materials or substances used in the initial stages of manufacturing or production.