A Financial Panic Was Averted in October 1987 Following "Black

question 95

Multiple Choice

A financial panic was averted in October 1987 following "Black Monday" when the Fed announced that

• A)it was lowering the discount rate.
• B)it would provide discount loans to any bank that would make loans to the security industry.
• C)it stood ready to purchase common stocks to prevent a further slide in stock prices.
• D)it was raising the discount rate.

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