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:

Organizational Position

The rank or status of an individual within a company's hierarchy, defining their roles, responsibilities, and authority.

Control

The process of directing and regulating the behavior or course of events in a business to achieve management's objectives.

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The process of encouraging individuals to remain dedicated and persist in their engagement with tasks or goals.

Leading

The act of guiding or influencing others to achieve organizational or group goals through motivation and leadership skills.