To move quickly to turn around the crisis during 2007-08, the U.S. Federal Reserve relied on:
A) lowering taxes.
B) removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers.
C) tightening up credit rules and keeping banks out of trouble.
D) admonishing the administration for its excessive debt situation.

Question

Quizplus · Accepted Answer

The U.S. Federal Reserve relied on removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers to move quickly to turn around the crisis during 2007-08. Lowering taxes and admonishing the administration for its excessive debt situation were not part of the Fed's strategy. Tightening up credit rules and keeping banks out of trouble may have been part of the strategy but were not explicitly mentioned as the main measures taken by the Fed.

To Move Quickly to Turn Around the Crisis During 2007-08