The Fed's purchases of long-term Treasury securities during the credit crisis were intended to
A)reduce long-term interest rates.
B)reduce interest rates on credit cards and consumer loans.
C)increase the federal funds rate.
D)restore confidence in the market for Treasury securities.

Question

Quizplus · Accepted Answer

The Fed's purchases of long-term Treasury securities were part of a quantitative easing strategy aimed at reducing long-term interest rates to stimulate economic activity.

The Fed's Purchases of Long-Term Treasury Securities During the Credit