Multiple Choice
What was the rationale for the Fed lending billions of dollars to the insurance company American International Group (AIG) ?
A) The Fed knew it would receive a high return on the loan.
B) The Fed was following a long-time precedent in rescuing top insurance companies.
C) If AIG collapsed,the insurance industry would as well.
D) The money AIG owed to banks posed a systemic risk.
Correct Answer:

Verified
Correct Answer:
Verified
Q78: What is the overnight lending rate from
Q79: Which is used most often by the
Q80: If the average reserve ratio in the
Q81: A liquid asset is:<br>A) an asset that
Q82: When the Fed conducts open market operations
Q84: Which concept describes the ease with which
Q85: The Federal Reserve can influence the economy
Q86: Demand deposits are:<br>A) small-time deposits.<br>B) savings deposits.<br>C)
Q87: When the Fed lowers the Federal Funds
Q88: Which is NOT included in the U.S.money