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  3. Study Set
    Modern Principles Macroeconomics
  4. Exam
    Exam 15: The Federal Reserve System
  5. Question
    The Fed Loaned Money to J
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The Fed Loaned Money to J

Question 3

Question 3

Multiple Choice

The Fed loaned money to J.P.Morgan and AIG because it was concerned about:


A) moral hazard on the part of these banks.
B) systemic risk,should these banks fail.
C) the liquidity of these banks.
D) the market demands being placed on these banks.

Correct Answer:

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