In response to the financial crisis and the Great Recession, the Fed took the following actions, except:
A) Reduced the federal funds rate to practically zero
B) Lowered the required reserve ratio
C) Initiated a few rounds of quantitative easing
D) Engaged in a policy of forward commitment

Question

Quizplus · Accepted Answer

The Fed did not lower the required reserve ratio during the financial crisis and the Great Recession. Instead, they implemented various other policies to stimulate the economy, such as reducing the federal funds rate to practically zero, initiating quantitative easing, and engaging in a policy of forward commitment. Lowering the required reserve ratio would have increased the money supply in the economy, which was not a priority at the time.

In Response to the Financial Crisis and the Great Recession