To compensate for the collapse of intermediation and the fragility of financial markets during the 2007-2009 financial crisis, central banks deployed all but which of the following unconventional tools:

Question

Quizplus · Accepted Answer

Central banks did lower interbank lending interest rate targets, but this is not an unconventional tool. It is a traditional tool used by central banks to manage monetary policy. The other options - forward guidance, quantitative easing, and targeted asset purchases - are all unconventional tools used by central banks to address the specific challenges of the financial crisis.

To Compensate for the Collapse of Intermediation and the Fragility