The Fed Allowed Nonbank Financial Institutions to Borrow Money from the Discount

question 51

Multiple Choice

The Fed allowed nonbank financial institutions to borrow money from the discount window during the mortgage crisis and even allowed nonbanks to swap mortgages for Treasury securities. This was an attempt by the Fed to reduce ________ at institutions.

• A)operational risk
• B)technological risk
• C)liquidity risk
• D)foreign exchange risk
• E)diversifiable risk

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Definitions:

RATER

A model used for the assessment of service quality, encompassing Reliability, Assurance, Tangibles, Empathy, and Responsiveness.

Service-Quality Dimension

Key aspects or criteria used to evaluate the quality of service provided, including tangibles, reliability, responsiveness, assurance, and empathy.

Professionalism

The conduct, behavior, and attitude expected of an individual in a work or business environment.

Quality

The degree to which a set of inherent characteristics fulfills requirements or expectations.