To prevent a financial crisis in 2008, the Fed under Ben Bernanke pursued a series of unorthodox policies; for example, it:
A)expanded its role as lender of last resort.
B)quickly reduced the federal funds rate.
C)arranged a risky loan for the purchase of Bear Stearns.
D)All of the Answer s are correct.

Question

Quizplus · Accepted Answer

The Fed expanded its role as lender of last resort, reduced the federal funds rate, and arranged a loan for Bear Stearns, all to stabilize the financial system.

To Prevent a Financial Crisis in 2008, the Fed Under