The fed is currently doing all of the following except:
- Lowering interest rate
- Safeguarding financial markets
- Using its emergency lending powers
- Preforming In some ways like a central bank to other central bank
- Granting funds to struggling industries
A flight to quality is when people:
- Sell dollars and buy euros
- Buy bonds and sell CDS
- Sell risky assets and buy equities
- Sell stocks and keep cash and/ or buy treasury securities
- Sell treasury notes and buy treasury bonds
In times of trouble companies, need to focus most on:
1.Federal Reserve is not responsible for safeguarding of the financial market because financial market safeguarding is mostly associated with security and exchange commission.
Federal Reserve is mostly concerned with structuring of monetary policy which may include lowering of interest rate, using of emergency learning power, performing like a central bank to other banks and granting funds to struggling industries.
Show the correct answer is b) safeguarding financial market.
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