During the Course of a Bad Recession the Fed Would

question 236

Multiple Choice

During the course of a bad recession the Fed would probably be doing each of the following,except

• A)selling securities on the open market.
• B)lowering interest rates.
• C)lowering reserve requirements.
• D)lowering the discount rate.

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Definitions:

Great Recession

A global economic downturn that began in 2007 with the collapse of the housing bubble in the US, leading to widespread financial and economic crises.

Monetary Policy

Actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.

Government Stimulus Package

A package of economic measures by a government aimed at stimulating a struggling economy by boosting spending and investment through various means such as tax cuts, spending increases, or lowering interest rates.

Depository Institutions Deregulation

The reduction or elimination of government regulations on banks and similar institutions to foster a more efficient and competitive financial environment.