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In 2008, the Federal Reserve of the United States and the Treasury

Question 196

Multiple Choice

In 2008, the Federal Reserve of the United States and the Treasury decided to allow Lehman Brothers (an investment bank) to fail; as a direct result


A) consumers around the US suffered a large fall in their savings.
B) American exporters were no longer able to get loans to finance production for export.
C) mortgage rates fell dramatically across the US.
D) securitization outside the government guaranteed mortgages stopped.
E) commercial banks stopped taking deposits.

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