During the 2007-2009 Financial Crisis,what Actions Did the Fed Take

question 51

Multiple Choice

During the 2007-2009 financial crisis,what actions did the Fed take to limit the scope of the crisis?

• A) The Fed lowered the spread on the discount rate to 50 basis points, and then to 25.
• B) The Fed set up the Term Auction Facility to provide further liquidity to banks.
• C) The Fed purchased assets of Bear Stearns to facilitate the purchase of Bear Stearns by J.P. Morgan.
• D) all of the above.

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Definitions:

Allergic Reaction

An immune system response to a foreign substance that's not typically harmful to your body, such as pollen, bee venom, pet dander, or certain foods.

Foreign Proteins

These are proteins that are recognized by the immune system as potential threats, originating outside the organism.

Hypersensitivity

An exaggerated or inappropriate immune response to a foreign substance.

Harmless Substance

A material or compound that is not likely to cause injury, damage, or disease.