As a direct consequence of the value of shares in Reserve Primary Fund "breaking the buck" in 2008, there was:
A)a run on money market funds.
B)Lehman Brothers went bankrupt.
C)the Troubled Asset Relief Program was created.
D)Fannie Mae and Freddie Mac became insolvent.

Question

Quizplus · Accepted Answer

The breaking of the buck in Reserve Primary Fund led to a panic among investors, resulting in a run on money market funds. This caused significant redemptions from money market funds, which many investors had considered a safe haven.

As a Direct Consequence of the Value of Shares in Reserve