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SAT® Subject Test in U.S. History

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The Financial Crisis of 2008

SATUSH-RIFJLC

Recession Diagram. Digital image. N.p., n.d. Web. 1 Mar. 2016.

The slide above shows the serious nature of the 2008 financial crisis that hit the United States. Despite the dire nature of the crisis, the American public did not suffer as Americans had throughout the Great Depression of the 1930s.

ALL BUT WHICH of the following were measures taken by the Federal government which served to prevent that 1930s experience?

A

The U.S. Treasury lent funds to both General Motors and AIG to prevent the bankruptcy of these major employers.

B

The Federal Reserve kept mortgage rates low to maintain a flourishing housing market.

C

Congress passed an economic stimulus package which included creating jobs for highway and bridge repairs.

D

Provisions were made for the unemployed to re-finance their mortgages through the Federal Housing Administration.

E

The U.S. Treasury bought and has maintained the global investment firm Bear Stearns, the first major financial catastrophe of the 2008 crisis.