Which of the following was not a major Fed policy during the 2007-2008 financial crisis?
A)cuts in the federal funds rate
B)rescue of Lehman Brothers Investment Bank
C)creation of the Primary Dealer Credit Facility
D)creation of the Term Auction Facility

Question

Quizplus · Accepted Answer

The Fed did not rescue Lehman Brothers Investment Bank during the financial crisis. In fact, the decision by the Fed and others not to rescue Lehman Brothers is often cited as one of the triggering events of the crisis. The other policy options listed (cuts in the federal funds rate, creation of the Primary Dealer Credit Facility, and creation of the Term Auction Facility) were all major Fed policies during the crisis.

Which of the Following Was Not a Major Fed Policy