One of the Reasons That the FOMC Lowered Its Target

question 116

Multiple Choice

One of the reasons that the FOMC lowered its target for the federal funds rate in September 2007 was

• A)confidence that the fallout from rising mortgage default rates would not spread to the wider economy
• B)the belief that lenders would respond to the housing crisis by loosening lending standards
• C)more easily available credit boosting investment and economic growth
• D)to add liquidity to financial markets and strengthen the economy
• E)All of the answers are correct

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Definitions:

Guidelines

Recommendations or protocols aimed at steering actions or decisions in a specific direction or towards achieving a desired outcome.

Family Member

An individual who is related to another by birth, adoption, or marriage, and holds a specific familial role such as parent, sibling, or spouse.

Nonfamily Employees

Employees who are not relatives or members of the business owner's family, hired to perform tasks and roles within an organization.

Financial Condition

The overall health of an organization's finances, including its assets, liabilities, and equity.