With respect to Lehman Brothers,Fed chair Ben Bernanke argued that

Question

Quizplus · Accepted Answer

Bernanke argued that even though the Fed wanted to save Lehman Brothers, the Federal Reserve Act did not allow it to do so because the company was already insolvent. Therefore, choice A is the best answer. Choices B and C are incorrect because they assume that Lehman Brothers was not insolvent, which was not the case. Choice D is also incorrect because it assumes that the Federal Reserve Act required the Fed to save Lehman Brothers, which is not true.

With Respect to Lehman Brothers,Fed Chair Ben Bernanke Argued That