Help Seve&Exit; S Another goal of the Federal Reserve is ensuring financial stab

Question

Help Seve&Exit; S Another goal of the Federal Reserve is ensuring financial stability Which of the following policy actions are lkely to help the Fed meet that goal? Instruction: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong You must click to select or deselect each option in order to recelive full credt Encoureging troubled benks to use the discount window Reessuring investors that the Federel Reserve is standing behind the banking system Reising the fed funds rete .covering the fed funds rate Direct lending to roubied WellStreet fma DOLL $12 5 8

Explanation / Answer

Answer :- Option 2). Reassuring investors that the Federal reserve is standing behind the banking system.

Option 4). Lowering the fed funds rate.

Option 5). Direct lending to troubled wall street firms.

Explanation :- The policy actions including reassuring investors that the federal reserve is standing behind the banking system, lowering of the fed funds rate and direct lending to troubled wall street firms will help Federal reserve bank (FED) to ensure the financial stability in an economy.

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