What did the Federal Reserve do during the financial crisis of 2008 and 2009?
What will be an ideal response?
The Federal Reserve serves as the lender of last resort. During the financial crisis it established many innovative facilities that were designed to keep money and credit available and flowing to financial institutions and businesses. It did so by loaning more funds and purchasing hard-to-sell securities from banks and other institutions. It also paid banks interest on the deposits they were required to keep at the Federal Reserve or that they held in their bank vaults.
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In the market for batteries, the three largest firms earn 90% of the total revenue and there are 35 firms in the industry. This industry is best described as
A) oligopoly. B) monopoly. C) monopolistic competition. D) perfect competition.
In many cities, the price of summer pops concerts has risen. In Charlotte, North Carolina, and Columbus, Ohio, for example, concerts that were once free now cost $5. If there are only fixed costs and no variable costs nor marginal costs in an orchestra concert, what is the efficient price? Explain the reason why some people will find the efficient price unfair.
What will be an ideal response?
Total utility
a. diminishes as the quantity consumed of a good increases. b. increases as long as more goods are acquired. c. increases as long as marginal utility increases. d. increases as long as marginal utility is positive. e. diminishes as consumption of some good rises.
A competitive price-searcher market is best described as
a. many firms with some control over price, and some product differentiation. b. many firms with no control over price, producing identical products. c. a few firms with some control over price, producing highly differentiated products. d. a few firms with no control over price, producing similar products. e. a single firm producing all of the output for the industry, with strong control over price.