Bernanke kept the prime interest rate at nearly zero to help banks obtain funds from the Federal Reserve to finance their operations and make loans to businesses.

Question

Quizplus · Accepted Answer

During the financial crisis of 2007-2008 and its aftermath, Ben Bernanke, as Chairman of the Federal Reserve, implemented policies that included keeping the federal funds rate (which influences the prime rate) at nearly zero. This was done to encourage lending and investment by making it cheaper for banks to obtain funds, thereby supporting the economy.

Bernanke Kept the Prime Interest Rate at Nearly Zero to Help