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If a Major Crash of the Financial System Began,the Federal

Question 53

Multiple Choice

If a major crash of the financial system began,the Federal Reserve would


A) provide money to banks in order to reassure investors and prevent banks from going bankrupt.
B) immediately reduce the money supply to stop people from withdrawing cash from their banks.
C) raise interest rates in order to provide banks with a more secure stream of income.
D) prop up stock prices by buying stocks in the 500 largest corporations.

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