ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.1%
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1.2%
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1.0%
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1.5%
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Detailed explanation-1: -The Federal Reserve’s response to the immediate effects of the attacks was to provide liquidity-the ability to make payments-to firms and individuals.
Detailed explanation-2: -Impact of 9/11 on 2002 Macroeconomic Outcomes The real GDP growth forecast fell from 3.5% to 2.7% over the first nine months of 2001. The 9/11 attack produced an immediate dramatic revision in this forecast from 2.7% to 1.2%, and the forecast was further revised downward in November by –0.75%.
Detailed explanation-3: -The Dow Jones Average was down more than 14%, the S&P 500 Index plunged 11.6%, and the Nasdaq dropped 16%. An estimated $1.4 trillion in value was lost during this period. Major stock sell-offs hit the airline and insurance sectors when trading resumed.
Detailed explanation-4: -In 2021, Afghanistan ranked first on the global terrorism index with a score of 9.11 points, making it the country most affected by terrorism on Earth.