In late 2007 and early 2008,concerns about financial institutions led the Fed to
A)create special lending facilities.
B)raise the target for the fed funds rate.
C)increase reserve requirements.
D)pay interest on bank reserves.

Question

Quizplus · Accepted Answer

The concerns about financial institutions led the Fed to create special lending facilities to provide liquidity to the banking system and prevent a widespread financial crisis. These facilities included the Term Auction Facility, the Primary Dealer Credit Facility, and the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility.

In Late 2007 and Early 2008,concerns About Financial Institutions Led