Discuss in detail the three things mentioned in the text that the Federal Reserve did to deal with the 2007-2009 financial crisis
To deal with the financial crisis of 2007-2009, the Fed did the following:
(1 ) Created the term auction facility (TAF) program which gave banks an alternative source of loans from the Fed. In this program, the Fed determines a set amount of credit that it wants to extend, and then banks bid on the funds. The interest rate paid by the banks is determined through this auction process, which has led to banks being able to borrow funds at a rate that is lower than that of discount loans. The Fed has also informed banks that there is no stigma attached to borrowing through the TAF program (as opposed to discount loans which sometimes signify to the Fed and the financial community that a bank is in trouble).
(2 ) Extended its lender of last resort function to institutions other than banks.
(3 ) Purchased securities on the open market from nonbanks, and broadened the types of securities that it purchased (including mortgage-backed securities).
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We can derive the market demand curve for gold earrings
A) only if the tastes of all gold earring consumers are similar. B) by adding the prices each gold earring consumer is willing to pay for each quantity. C) by adding horizontally the individual demand curves of each gold earring consumer. D) by adding vertically the quantity demanded of each gold earring consumed at each price.
Use the information in the above table. If Income was evenly distributed, each person would receive
A) $9,000. B) $2,500. C) $1,800. D) $1,000.