The Fed and Treasury Took Action to Restore the Flow

question 24

Multiple Choice

The Fed and Treasury took action to restore the flow of funds from savers to borrowers in order to encourage all of the following EXCEPT

• A) increase the return to savers.
• B) enable households to purchase durable goods.
• C) increase the likelihood of purchases of houses.
• D) allow firms to finance purchases of structures and equipment.

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Definitions:

The Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins into carbon dioxide and chemical energy in the form of adenosine triphosphate (ATP).

Fatty Acids

Organic compounds that are the building blocks of fats in the human body and are used for energy storage and cell structure.

Acetyl-CoA

An important metabolic intermediate that links glycolysis and the citric acid cycle, involved in energy production and synthesis of fatty acids.

Aerobic Respiration

A metabolic process involving oxygen in the breakdown of glucose or other nutrients to produce energy (ATP), carbon dioxide, and water, taking place in the mitochondria of cells.