In Response to the Financial Crisis in 2008, the Fed

question 47

Multiple Choice

In response to the financial crisis in 2008, the Fed created which of the following policy tools?

• A) Quantitative easing.
• B) The required reserve ratio.
• C) The discount rate.
• D) The federal funds rate.
• E) Open market operations.

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Definitions:

Advocacy Groups

Organizations that aim to influence public policy and resource allocation decisions within political, economic, and social systems and institutions.

Climbing the Agenda

The process of prioritizing issues or topics to gain attention or resources within an organization or society.

501(c)(3)

A section of the U.S. Internal Revenue Code that provides a tax exemption for nonprofit organizations that are charitable, religious, educational, scientific, or literary in nature.

Lobbying

The act of attempting to influence decisions made by officials in a government, most often legislators or members of regulatory agencies.