In the Aftermath of the Recent Financial Crisis, the Fed's

question 97

Multiple Choice

In the aftermath of the recent financial crisis, the Fed's assets on its balance sheet grew to include which of the following?

• A) term auction credit
• B) mortgage-backed securities
• C) bank reserves
• D) liabilities
• E) Treasury accounts

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Definitions:

Monopoly Power

The ability of a firm or entity to control or dominate an industry or sector, enabling it to set prices above competitors without losing significant market share.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to perceived satisfaction and quality.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the net benefit to society, meaning no one can be made better off without making someone else worse off.

Economies of Scale

Cost benefits acquired by businesses due to the size of their operations, which causes a decrease in the cost per output unit as the operation's scale increases.