________ 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' reluctance to take on more risk
D) Higher federal funds rates
E) Low real interest rates

Question

Quizplus · Accepted Answer

Even though the Fed attempted to increase liquidity by lowering interest rates and injecting money into financial markets, commercial banks remained hesitant to take on more risk after the 2008 financial crisis. Therefore, they reduced loans despite the efforts made by the Fed.

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