In December 2008, the Federal Reserve announced that it would take extraordinary measures to address the financial crisis in the economy. These measures include all of the following except
A) buying mortgage-backed securities.
B) buying long-term Treasury bills.
C) creating other new credit facilities to make credit more easily available to households and small businesses.
D) lowering the reserve requirement to encourage banks to create loans.

Question

Quizplus · Accepted Answer

The Federal Reserve did not lower the reserve requirement to encourage banks to create loans as part of its extraordinary measures to address the financial crisis in the economy.

In December 2008, the Federal Reserve Announced That It Would