According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.

-The money supply became less liquid.

-Consumer spending increased dramatically.

-Lending and credit stopped.

-Banks were too easily able to fulfill consumer demands for loans.

-It was difficult for banks to receive the loans needed to have cash required to function.

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Business

Misael Boyle

18 May, 17:45

According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.

-The money supply became less liquid.

-Consumer spending increased dramatically.

-Lending and credit stopped.

-Banks were too easily able to fulfill consumer demands for loans.

-It was difficult for banks to receive the loans needed to have cash required to function.

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Brewster · Answer 1

The year 2008-2009 was considered as the worst financial crisis year ever since the Great Depression happened in late 1930's. This all happened due to (1) the banks fulfilled the demands of the consumer towards loans, and (2) there was an increasing amount of consumers spending.