Societe generale, france's second largest banking establishment, had
long had a reputation for having poor internal controls. it is no
wonder that a relatively inexperienced trader was able to take
advantage of the bank's system of weak internal controls to exceed his
trading limit and cause the bank to lose more than €4.9 billion.
a. true
b. false

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.