One of the Reasons That the FOMC Lowered Its Target

question 116

Multiple Choice

One of the reasons that the FOMC lowered its target for the federal funds rate in September 2007 was

• A)confidence that the fallout from rising mortgage default rates would not spread to the wider economy
• B)the belief that lenders would respond to the housing crisis by loosening lending standards
• C)more easily available credit boosting investment and economic growth
• D)to add liquidity to financial markets and strengthen the economy
• E)All of the answers are correct

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Definitions:

Endocrine System

A network of glands in the body that secrete hormones directly into the bloodstream to regulate various bodily functions, including growth, metabolism, and mood.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Lesion

Tissue destruction. A brain lesion is a naturally or experimentally caused destruction of brain tissue.

Defective Cells

Cells that have abnormalities or dysfunctions, often leading to diseases or health conditions.