Which of the following describes a change that the Federal Reserve made in response to the financial crisis of 2007-2009?

Question

Quizplus · Accepted Answer

The Federal Reserve extended the lender of last resort function to institutions other than banks in response to the financial crisis of 2007-2009. The Fed also implemented a number of other measures to address the crisis, but none of these are reflected in the other answer choices. The Fed expanded the range of assets eligible for open market operations, including mortgage-backed securities and agency debt, and it did not limit its open market operations to buying Treasury securities from banks. Additionally, the Fed did not discontinue its term auction facility (TAF) program during the crisis, though it did reduce the frequency of TAF auctions over time.

Which of the Following Describes a Change That the Federal