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When the Fed Initiated a Program to Purchase Commercial Paper

Question 12

Multiple Choice

When the Fed initiated a program to purchase commercial paper, one of its primary goals was to


A) prevent financial institutions from holding commercial paper.
B) require that financial institutions increase their holdings of commercial paper.
C) increase activity in the market for commercial paper and boost the confidence of investors in commercial paper.
D) prevent financial institutions from issuing commercial paper in the future.

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