True OR False Increasing the deposit insurance limits, opening the Fed’s Discount window to institutions not...

True OR False

Increasing the deposit insurance limits, opening the Fed’s Discount window to institutions not previously able to access discount window funds and the Treasury’s purchase of super preferred shares of the Top 10 largest commercial bank was a mult-pronged strategy to mitigate the financial crisis.

Expert Solution

The given statement is TRUE because increasing the deposit insurance limits and opening the discounting window of the Federal Reserve to the institutions not previously able to access discounting window fund and purchase of super preferred shares by the treasury of the top largest commercial banks is multi pronged strategy to mitigate the financial crisis.

Hence, it was done in order to mitigate the financial crisis and reduce the impact of financial contagion.

The given statement is TRUE..

jeff jeffy answered 2 years ago

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