In Late 1998 the Fed Averted a Possible Financial Panic

question 2

Multiple Choice

In late 1998 the Fed averted a possible financial panic by

• A)lowering interest rates.
• B)raising interest rates.
• C)using its influence to bring together the creditors of Long-Term Capital Management.
• D)using its influence to encourage banks to make loans to broker-dealers in the securities industry.

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Definitions:

Hydrogen Ion Gradient

A hydrogen ion gradient is the differential concentration of hydrogen ions (protons) across a membrane, important in processes such as ATP synthesis.

Electron Transfer Chain

A series of complexes that transfer electrons through a membrane within mitochondria to produce ATP, the energy currency of the cell.

Free Radicals

Atoms or groups of atoms with unpaired electrons that are highly reactive, potentially causing damage to cells and DNA.

Cellular Damage

Harm or injury to cells resulting from various factors, such as toxins, infection, or physical injury, affecting their function.