Which of the Following Is Not a Way the Fed

question 165

Multiple Choice

Which of the following is not a way the Fed has tried to soothe troubled world markets?

• A) When Mexico faced financial difficulties in 1994, Fed officials helped arrange loans to prevent a financial crisis.
• B) A worldwide financial panic in the fall of 1998 because of defaults on Russian bonds prompted the Fed to lower the federal funds rate to supply more liquidity.
• C) A worldwide shortage of credit in 2007-2009 caused by mortgage defaults in the United States prompted the Fed to supply additional liquidity to the banking system.
• D) The Fed's pursuing its twin statutory mandates of price stability and maximum employment.
• E) The Fed chairperson being in frequent contact with other central bankers.

---

Definitions:

U.S. Aid Programs

Initiatives provided by the United States government intended to help other countries in terms of economic development, health care, infrastructure, and education.

Growth Obstacle

Factors or conditions that hinder the economic growth and development of a country or region, such as poor infrastructure or political instability.

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.