Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?
A)Paid interest in reserve banks kept by the Fed
B)Lowered key interest rates
C)Allowed most troubled banks to fail
D)Purchased troubled assets from banks
E)Lent money at discount rates to nonbanking institutions

Question

Quizplus · Accepted Answer

During this period,the Federal Reserve took unprecedented actions that included buying up troubled assets from the banks and lending money at the discount window to nonbanks such as investment banks and brokers.The Fed also entered into the financial markets by making markets in commercial paper and other securities where the markets had ceased to function in an orderly fashion.Additionally,the Fed began to pay interest on reserves banks kept at the Fed and finally,it kept interest rates low to stimulate the economy and to help the banks regain their health.

Which of the Following Actions Did the Federal Reserve Not