During the stock market crash of 1987, the Fed reversed the crisis psychology by selling securities to banks and corporations.

Question

Quizplus · Accepted Answer

During the stock market crash of 1987, the Fed actually eased the crisis by promising to supply liquidity to the banking system, not by selling securities to banks and corporations. This action reassured investors and helped to stabilize the financial markets.

During the Stock Market Crash of 1987, the Fed Reversed