As a Result of the Fed's Actions During the 2008

question 80

Multiple Choice

As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,

• A)the M2 money multiplier has fallen from about 9 to about 4.
• B)the M2 money multiplier more than doubled.
• C)the monetary base decreased by 50 percent.
• D)the ratio of currency to M2 deposits more than doubled.
• E)the reserve requirement ratio increased.

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Definitions:

Financing Statement

A document filed to give public notice that a creditor has a security interest in the property of a debtor, often used in secured transactions.

Enforceable Security Interest

A legal claim or right granted to a creditor to secure repayment of a debt that can be enforced by law.

Commitment

An obligation or pledge to do something in the future, such as a promise made by a person or an institution to undertake certain actions.

Financing Statement

A document filed to give public notice typically of a secured transaction involving personal property, which helps establish the priority of the filer's interest in the property.