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:

Nucleophilicity

A measure of a molecule or ion's strength as a nucleophile, or its ability to donate an electron pair to an electrophile.

Basicity

A measure of a substance's ability to donate electrons or accept protons, commonly applied in the context of acids and bases.

Nucleophilic

Characteristic of a chemical species that donates an electron pair to an electrophile to form a chemical bond in reaction.

t-Butoxide

A strong, non-nucleophilic base, often used in organic synthesis, derived from tertiary butanol.