What is the Fed? - History Quiz Question Title 1. What are the main factors that ignited the Great Recession of 2007? Housing bust, easy credit, and difficult mortgages Housing boom, difficult credit, and easy mortgages Housing boom, easy credit, housing bust/mortgage meltdown Question Title 2. Who helped fix the Panic of 1907, and how? Andrew Carnegie used his own personal funds from his U.S. Steel Corporation. J.P. Morgan used his personal funds to provide emergency loans for financial institutions. The Federal Reserve used its own funds to provide emergency loans for financial institutions. Question Title 3. What did the government do to remedy The Financial Panic of 1907? Set up the Federal Reserve System in 1919 Set up the Federal Reserve System in 1913 Set up the Federal Deposit Insurance Corporation in 1913 Question Title 4. How did the Great Recession of 2007 have a global impact? Many individual and institutional investors were large employers in the U.S. and spread the fallout of the financial crisis worldwide. Many individual and institutional investors bought U.S. mortgage-related investments, spreading the fallout from the mortgage meltdown around the globe. Many individual and institutional investors were also American mortgage brokers and spread the fallout around the globe. Question Title 5. How did the Great Recession of 2007 affect the U.S. economy? GDP declined, employment fell, unemployment rose, and housing prices declined. GDP increased, employment fell, unemployment rose, and housing prices increased. GDP declined, employment rose, unemployment fell, and housing prices increased. Question Title 6. What legislation came about as a result of the 2007 financial crisis? The Dodd-Frank Financial Reform Act The Federal Reserve Financial Reform Act The McCain-Palin Financial Campaign Reform Act SUBMIT