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Following the 2008 Financial Crisis, Commercial Banks

Question 126

Multiple Choice

Following the 2008 financial crisis, commercial banks:


A) borrowed an amount equal to 14 times their total reserves before the crisis.
B) avoided borrowing from the Fed.
C) preferred to sell large amounts of their assets to raise cash to avoid bank runs rather than borrow from the Fed.
D) insisted that market forces be allowed to work to resolve the crisis rather than accept loans from the Fed.

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