Looking at the Fed's Actions During the 2008 Financial Crisis

question 136

Multiple Choice

Looking at the Fed's actions during the 2008 financial crisis, we can see that the Fed

• A) decrease the monetary base to reduce risky lending.
• B) doubled the monetary base.
• C) doubled the money multiplier.
• D) caused banks to increase the reserve requirement ratio.
• E) increased the monetary base by 10 percent.

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Definitions:

Thrombus

A blood clot that forms in a vessel and remains there, which can lead to vascular blockage and health complications.

Tumors

Abnormal masses of tissue that form when cells grow and divide more than they should or do not die when they should.

Ulcer

An open sore or lesion, typically found in the stomach or duodenal lining, often caused by infection with H. pylori bacteria or prolonged use of NSAIDs.

Amenorrhea

The absence of menstruation in someone of reproductive age, which can be a sign of health issues.