In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed
A)raised reserve requirements.
B)raised the amount of interest paid on reserves held at Fed banks.
C)declared a series of bank holidays to give banks a chance to recover from excessive withdrawals from customer accounts.
D)lowered the federal funds target rate.

Question

Quizplus · Accepted Answer

The Federal Reserve lowered the federal funds target rate to encourage lending and stimulate the economy during the financial crisis.

In an Effort to Stabilize the Banking Sector and Keep