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

question 114

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 to keep the federal funds rate at 1 percent from June 2003 to June 2004
• C)working in concert with the European Central Bank to stabilize the dollar / euro exchange rate
• D)financing the first Gulf War by printing money and generating rapid inflation

---

Definitions:

Controller ECU

An Electronic Control Unit (ECU) in a vehicle that manages the operations of its electrical systems or components.

Tandem Drive

A drive system where two power sources or axles work in conjunction to provide propulsion, commonly used in heavy-duty vehicles for improved traction and load distribution.

4S/4M ABS

A specific configuration of Anti-lock Braking System (ABS) technology that includes sensors and modulators for 4 sensors and 4 modulators, enhancing vehicle stability and control.

Modulated

Adjusted or regulated in stages or by degrees; often describes the variable control of power or signal in a system.