Asked by
Danny Bernal
on Nov 11, 2024Verified
Which of the following measures did the Fed take during the uncertain days following the terrorist attacks of September 11,2001?
A) The Fed tightened regulations in the financial markets.
B) The Fed increased the discount rate.
C) The Fed bought all the government securities up for sale.
D) The Fed increased the reserve requirement ratio.
E) The Fed demanded interest on the bank reserves held at the Fed.
Financial Markets
Banks and other financial institutions that facilitate the flow of funds from savers to borrowers.
Discount Rate
The interest rate set by central banks that they charge commercial banks for loans and advances, influencing monetary conditions and economic indicators like inflation and investment.
Government Securities
Financial instruments issued by a government to borrow money from investors, often with a promise to pay periodic interest and repay the principal at maturity.
- Understand the reasons behind central banks' policy actions during economic crises and their immediate impacts on the financial system.
Verified Answer
AN
Learning Objectives
- Understand the reasons behind central banks' policy actions during economic crises and their immediate impacts on the financial system.