__________ reduced loans despite the Fed's attempts to get liquidity flowing in financial markets after 2008.
A)Lessening regulatory control over banks
B)Record real estate foreclosures
C)Commercial banks' reluctant take on more risk
D)Interest payments on bank reserves
E)c and d

Question

Quizplus · Accepted Answer

Commercial banks were reluctant to take on more risk, and interest payments on bank reserves provided an incentive for banks to hold onto their reserves rather than lend them out, both contributing to reduced loans.

__________ Reduced Loans Despite the Fed's Attempts to Get Liquidity