In addition to paying interest on reserves starting in October 2008, the Fed also provided
A)lending against a variety of collateral, such as commercial paper and mortgage-backed securities.
B)advice on how to conduct contemporaneous reserve accounting.
C)the power for banks to print and distribute their own currency.
D)staff people to help banks make real-estate decisions regarding the locations of their branch offices.

Question

Quizplus · Accepted Answer

The Fed's lending programs during the financial crisis included a range of collateral, including commercial paper and mortgage-backed securities. This helped to provide liquidity to financial institutions and stabilize the financial system. The other choices are not accurate descriptions of actions taken by the Fed during this time.

In Addition to Paying Interest on Reserves Starting in October