How did the federal government contribute to the speculation of the 2000s?
A)Clinton told the Federal Reserve to invest in hedge funds.
B)The U.S. Treasury became an investor in the stock market.
C)The Treasury invited speculation on the dollar against the euro.
D)Congress broke down the wall between investment and commercial banking.

Question

Quizplus · Accepted Answer

Congress passed legislation that effectively removed the barriers between investment banking and commercial banking, which had been established by the Glass-Steagall Act of 1933. This deregulation allowed for increased speculation and risk-taking in the financial sector, contributing to the financial crisis of the late 2000s.

How Did the Federal Government Contribute to the Speculation of the 2000s