The Fed's response to the housing crisis of 2007 and 2008 was to
A) encourage discount window borrowing.
B) reduce taxes on financial institutions.
C) raise the federal funds rate.
D) raise the reserve requirement.

Question

Quizplus · Accepted Answer

The Fed created new avenues to lend to banks and encouraged banks to use the Fed's lender of last resort function, including the discount window.

The Fed's Response to the Housing Crisis of 2007 and 2008