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

Question 84

Multiple Choice

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


A) suspended its role as lender of last resort so that the financial market could correct itself.
B) acquired the assets of a number of bankrupt firms.
C) served as a lender of last resort to solvent, but not insolvent, firms.
D) served as a lender of last resort to both solvent and insolvent firms.

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