In 2008, When the U

question 33

Multiple Choice

In 2008, when the U.S. financial system collapsed, it led to:

• A)very high inflation, and the Federal Reserve followed a strict contractionary monetary policy to bring prices down.
• B)the Federal Reserve lowering the interest rate, and the economy revived as businesses and individuals secured low-interest loans.
• C)a severe cycle of deleveraging and a credit crunch for the economy as a whole.
• D)the Federal Reserve increasing the interest rate, which further destabilized the economy.

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Definitions:

Amortized

The process of paying off a debt or loan in regular installments over a set period of time, which includes both principal and interest.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.

Entire Business

Refers to the complete scope or operation of a company, encompassing all its functional areas and activities.

Legal Costs

Expenses associated with the legal process, including lawyer fees, court fees, and other costs incurred during legal proceedings.