What Unusual Measures Did the Fed Take in Trying to Reduce

question 56

Multiple Choice

What unusual measures did the Fed take in trying to reduce the risk premium during the Financial Crisis of 2007-2009?

• A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac
• B) reducing the federal funds rate multiple times
• C) issuing its own securities
• D) eliminating the discount rate on loans to member banks

Understand the necessity of flexibility in organizational controls.

Comprehend the importance of balancing cost versus benefit in effective control systems.

Recognize the various attributes that make controls effective.

Distinguish between strategic planning and operational planning in an organizational context.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Legal Persons

Entities, such as corporations or governmental bodies, that are recognized by law as having rights and responsibilities similar to natural persons.

Corporate Power

The legal authority and inherent capacities that a corporation possesses to conduct business, enter into contracts, and own assets.

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including strategy, governance, and overall direction.