Multiple Choice
During the 2007-2009 financial crisis,what actions did the Fed take to limit the scope of the crisis?
A) The Fed lowered the spread on the discount rate to 50 basis points, and then to 25.
B) The Fed set up the Term Auction Facility to provide further liquidity to banks.
C) The Fed purchased assets of Bear Stearns to facilitate the purchase of Bear Stearns by J.P. Morgan.
D) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q46: Banks' holding of deposits in accounts with
Q48: Although the goals of high employment and
Q49: The Bank of England,as well as the
Q50: Distinguish between the three types of Fed
Q52: The discount rate is<br>A) the interest rate
Q53: What goals are continually mentioned by central
Q54: A discount loan by the Fed to
Q55: The supply curve for reserves shifts to
Q56: Regulations making it obligatory for depository institutions
Q71: At its inception,the Federal Reserve was intended