Before the financial crisis of 2008, if the Fed wanted to lower the Federal funds rate, it
A)increased the discount rate.
B)increased the reserve ratio.
C)bought bonds from banks and the public.
D)sold bonds to banks and the public.

Question

Quizplus · Accepted Answer

The Federal Reserve would buy bonds from banks and the public to inject money into the banking system, increasing the supply of reserves and lowering the federal funds rate.

Before the Financial Crisis of 2008, If the Fed Wanted