Two Actions by the Fed During Alan Greenspan's Term as Chairman

question 250

Multiple Choice

Two actions by the Fed during Alan Greenspan's term as chairman have been identified as possibly contributing to the financial crisis in 2008.Which of the following was one of those actions?

• A)decreasing the money supply to fight the possibility of disinflation
• B)the decision during 1998 to help save the hedge fund Long Term Capital Management
• C)working in concert with the European Central Bank to stabilize the dollar / euro exchange rate
• D)financing the war in Afghanistan by printing money and generating rapid inflation

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Definitions:

Inventory

The items or goods a company holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Low-Cost Strategy

A competitive strategy focusing on becoming the lowest cost producer in an industry to offer products or services at the lowest price possible to consumers.

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.