Which of the Following Describes a Change That the Federal

question 119

Multiple Choice

Which of the following describes a change that the Federal Reserve made in response to the financial crisis of 2007-2009?

• A)The Fed extended the lender of last resort function to institutions other than banks.
• B)The Fed narrowed the scope of its open market operations,choosing to limit it to only buying Treasury securities from banks.
• C)The Fed discontinued its term auction facility (TAF)program.
• D)all of the above

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Definitions:

Strict Liability

A legal standard that holds parties responsible for damages or harm caused by their actions, regardless of fault or intent.

Unreasonably Unsafe

Describes a condition or product that poses a significant risk of harm to people or property beyond what would be considered reasonable.

Doctrine of Unconscionability

A legal principle that contracts with terms that are excessively unfair or oppressive can be found invalid or modified by a court.

Implied Warranties

Legal guarantees implied by law regarding the satisfactory quality and fit for purpose of goods, even if not expressly stated by the seller.