Recall Application 3, "The Financial System Under Stress: September 11, 2001," to answer the following questions:
-To avoid a financial crisis after September 11, 2001, any policy by the implemented Fed must:

Question

Quizplus · Accepted Answer

In order to avoid a financial crisis after September 11, 2001, the implemented Fed had to increase the amount of money in circulation. This was done to stimulate economic activity and provide liquidity to financial markets. Decreasing the amount of money in circulation or increasing the debt of the US treasury could have worsened the financial situation. Additionally, there is no requirement for the policy to be approved by the President of the United States in this situation.