During the financial crisis of 2008, the Fed:
A)was closed for a three-week bank holiday by President George W. Bush.
B)remained open but was severely limited in its operations.
C)was merged with the Treasury Department to increase its power to deal with the crisis.
D)expanded its operations by lending to institutions other than commercial banks and buying financial assets other than Treasury bills.

Question

Quizplus · Accepted Answer

During the financial crisis of 2008, the Fed expanded its operations by lending to institutions other than commercial banks and buying financial assets other than Treasury bills. This included the implementation of programs such as the Term Auction Facility and the purchase of mortgage-backed securities.

During the Financial Crisis of 2008, the Fed