In: Economics
In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed _____.
raised reserve requirements
lowered the federal funds target rate
declared a series of bank holidays to give banks a chance to recover from excessive withdrawals from customer accounts
raised the amount of interest paid on reserves held at Fed banks
The answer is option b- lowered the federal funds target rate.
In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed: lowered the federal funds target rate.