Why Did the Fed Expand Discount Lending in the Aftermath

question 55

Multiple Choice

Why did the Fed expand discount lending in the aftermath of the terrorist attacks in the fall of 2001?

• A)It feared that inflation was going to increase.
• B)To ensure the smooth operation of banks in the affected areas.
• C)It feared the effects on the U.S. economy of rising oil prices.
• D)It was attempting to increase the chances that President Bush would be reelected.

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Definitions:

Histogram

A histogram is a graphical representation used in statistics to show the distribution of numerical data, where the data is divided into bins or intervals.

Histogram

A visual chart that categorizes a collection of data points into ranges defined by the user.

Building/Construction

The process of constructing or assembling infrastructure, buildings, or other physical structures, encompassing planning, design, and management.

Architecture

The art and science of designing and constructing buildings and other physical structures.