In 2007, many banks refused to request a loan because they worried that:
A)it would signal weakness.
B)they wouldn't be able to repay it.
C)they didn't have enough deposits.
D)they would be punished by the Fed.

Question

Quizplus · Accepted Answer

In 2007, during the financial crisis, banks were concerned that requesting a loan from the Federal Reserve would signal financial weakness to the market and investors, potentially leading to a loss of confidence.

In 2007, Many Banks Refused to Request a Loan Because