2 Describe the extensive safety net that has been set up in

2. Describe the extensive \"safety net\" that has been set up in the United States in order to reduce the tiskbank failure

Solution

Safety Net measures are the array of tools and measures used by government and central governmnet funds to support financial institutions. It generally covers lending and asset purchasing by Federal Reseve, capital infusions, debt guarantees and expanded deposit insurance from the government. These tools have been used extensively by Federal government to mitigate the efefcts of financial risk. Lendng money by Federal governmne durin the time of financial crisis act as boon for the growth of the economy and improving the living standards of the people.

Expanded deposit insurance also exends support to the common public during the time of financial crisis and thus benefit the economy.