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(Last Word) During the Financial Crisis of 2007-2008

Question 99

Multiple Choice

(Last Word) During the financial crisis of 2007-2008,


A) many solvent firms were in danger of bankruptcy because their assets were illiquid.
B) the Federal Reserve took over and reorganized a number of insolvent firms.
C) many large banks were insolvent and ultimately declared bankruptcy.
D) the Federal Reserve served as lender of last resort to solvent firms, but let insolvent firms go bankrupt.

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