In response to the financial crisis,the Fed effectively lowered interest rates to __________ percent.
A)1%.
B)5%
C)zero.
D)-1%
E)3%.

Question

Quizplus · Accepted Answer

In response to the financial crisis, the Fed effectively lowered the federal funds rate, which is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight, to a range between 0 and 0.25 percent in December 2008. This was a historic move and aimed to stimulate borrowing and economic activity by making it much cheaper to access credit. Therefore, the best choice would be C) zero.

In Response to the Financial Crisis,the Fed Effectively Lowered Interest