Two Actions by the Fed During Alan Greenspan's Term as Chairman

question 250

Multiple Choice

Two actions by the Fed during Alan Greenspan's term as chairman have been identified as possibly contributing to the financial crisis in 2008.Which of the following was one of those actions?

• A)decreasing the money supply to fight the possibility of disinflation
• B)the decision during 1998 to help save the hedge fund Long Term Capital Management
• C)working in concert with the European Central Bank to stabilize the dollar / euro exchange rate
• D)financing the war in Afghanistan by printing money and generating rapid inflation

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Definitions:

Ascending Tracts

Ascending Tracts refer to the pathways in the nervous system through which sensory information from the peripheral nerves is conveyed up to the brain.

Neural Crest Cells

A group of cells in vertebrate embryos that migrate to form diverse cell types, including neurons, glial cells, and connective tissue.

Enteric Neurons

Neurons that are part of the enteric nervous system, which governs the function of the gastrointestinal system.

Adrenal Medulla

The inner section of the adrenal gland that secretes adrenaline and noradrenaline, playing a role in the body's fight-or-flight response.