During the Last Financial Crisis,the Fed Was Criticized for Overstepping

question 113

Multiple Choice

During the last financial crisis,the Fed was criticized for overstepping its authority and exercising powers it had not been granted.Which of the following was NOT one of the causes of this criticism of the Fed?

• A) The Fed did not explain why it was taking certain actions.
• B) The Fed bought huge amounts of risky assets from troubled banks.
• C) The Fed helped to bail out nonbank institutions.
• D) The Fed expanded the monetary base so far that it risked inflation in the future.

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