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.
Answer
A
The money supply became less liquid.
B
Consumer spending increased dramatically.
C
Lending and credit stopped.
D
Banks were too easily able to fulfill consumer demands for loans.
E
It was difficult for banks to receive the loans needed to have cash required to function.
Explanation
During the 2008 financial crisis, liquidity fell: money and credit became harder to obtain and use. Lending and credit markets largely froze, and banks struggled to borrow the cash they needed to keep operating. Consumer spending did not increase dramatically, and banks were not easily meeting loan demand.
AI-written and checked against the verified answer.