During World War II, the Fed pegged interest rates in order to
A)stabilize the money supply.
B)help the Treasury finance the war effort.
C)control the inflation rate.
D)encourage home buying.

Question

Quizplus · Accepted Answer

The Fed pegged interest rates during World War II to help the Treasury finance the war effort. By keeping interest rates low, the government was able to borrow money at cheaper rates, which helped fund the war.

During World War II, the Fed Pegged Interest Rates in Order