During the credit crisis, the Fed took the unprecedented step of intervening in the stock markets to prevent the stock prices of major commercial banks from declining by more than 10 percent from the previous quarter.

Question

Quizplus · Accepted Answer

During the credit crisis, the Federal Reserve's interventions primarily focused on providing liquidity to banks, lowering interest rates, and purchasing securities to stabilize financial markets, rather than directly intervening to prevent stock prices of commercial banks from declining by a specific percentage.

During the Credit Crisis, the Fed Took the Unprecedented Step