In the Aftermath of the Financial Crisis That Began in 2008

question 102

Multiple Choice

In the aftermath of the financial crisis that began in 2008, the Fed's assets and liabilities on its balance sheet:

• A) grew to $100 billion.
• B) shrank to almost zero.
• C) grew to over $2 trillion.
• D) stayed more or less the same.
• E) grew to about $1 trillion.

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Definitions:

If-converted Method

An accounting method used to calculate earnings per share, assuming all convertible securities were transformed into common stock.

Diluted Earnings

Earnings per share calculated using the assumption that all convertible securities have been converted to common stock, potentially lowering earnings per share.

Comparability

A quality of accounting information that allows users to analyze and compare financial data from different periods and entities in order to make informed decisions.

Capital Raised

The total amount of funds collected by a company from investors or financial markets, often used for business operations, expansion, or paying off debt.