The policy tool of "credit easing" refers to the ________ during the 2008 financial crisis.
A) Fed's purchase of private securities to stimulate banks' lending
B) Fed's requirement that the federal government must lend to directly to home buyers
C) federal government's requirement that the Fed must lend directly to home buyers
D) Fed's lowering of the federal funds rate to zero
E) Treasury's issuance of federal debt to finance home buying

Question

Quizplus · Accepted Answer

Credit easing refers to the Federal Reserve's policy of purchasing private securities to stimulate banks' lending. This was one of the measures taken by the Fed during the 2008 financial crisis to increase the availability of credit and support the economy.

The Policy Tool of "Credit Easing" Refers to the ________