What Unusual Measures Did the Fed Take in Trying to Reduce

question 63

Multiple Choice

What unusual measures did the Fed take in trying to reduce long-term interest rates during the financial crisis of 2007-2009?

• A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac
• B) reducing the federal funds rate multiple times
• C) issuing its own securities
• D) eliminating the discount rate on loans to member banks

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Definitions:

Cultural Competence Skill Areas

The range of abilities necessary to effectively interact, work, or engage with people from different cultural backgrounds.

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Racial Attitudes

The beliefs, feelings, and behaviors towards people based on their racial identity.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, playing a critical role in personal development and interpersonal relationships.