Which of the following did the Fed NOT do during the credit crisis?
A)purchase mortgage-backed securities
B)purchase commercial paper
C)reduce the targeted federal funds rate
D)raise the primary credit rate

Question

Quizplus · Accepted Answer

The Federal Reserve did not raise the primary credit rate during the credit crisis. Instead, it took measures to lower interest rates and provide liquidity to the financial system, such as purchasing mortgage-backed securities, buying commercial paper, and reducing the targeted federal funds rate. Raising the primary credit rate would have contradicted these efforts by making borrowing more expensive.

Which of the Following Did the Fed NOT Do During