During the last financial crisis,the Fed was criticized for overstepping its authority and exercising powers it had not been granted.Which of the following was NOT one of the causes of this criticism of the Fed?
A) The Fed did not explain why it was taking certain actions.
B) The Fed bought huge amounts of risky assets from troubled banks.
C) The Fed helped to bail out nonbank institutions.
D) The Fed expanded the monetary base so far that it risked inflation in the future.

Question

Quizplus · Accepted Answer

The criticism was not about the Fed failing to explain its actions, but rather about the nature and scope of the actions it took, such as buying risky assets, bailing out nonbank institutions, and expanding the monetary base.

During the Last Financial Crisis,the Fed Was Criticized for Overstepping