What unusual measures did the Fed take in trying to reduce long-term interest rates during the financial crisis of 2007-2009?
A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac
B) reducing the federal funds rate multiple times
C) issuing its own securities
D) eliminating the discount rate on loans to member banks

Question

Quizplus · Accepted Answer

The Fed purchased mortgage-backed securities issued by Fannie Mae and Freddie Mac as part of its quantitative easing program to lower long-term interest rates and stimulate the economy during the financial crisis.

What Unusual Measures Did the Fed Take in Trying to Reduce