Multiple Choice
During the 2007 - 2009 financial crisis, some of the very largest financial institutions were deemed as being "too big to fail" because their failure would cause cascading negative repercussions throughout the U.S.and many foreign economies.As a result, the Federal Reserve
A) moved to reduce liquidity in the monetary system and increased its target federal funds rate to above .25 percent.
B) worked with the U.S.Treasury to help facilitate the separation of financially weak institutions with institutions that were financially stronger.
C) both a and b are true
D) none of the above are true
Correct Answer:

Verified
Correct Answer:
Verified
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