Macroeconomics

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Zero FF Rate

MACRO-NT6E1C

Which tool did the Federal Reserve use first to specifically address the recessionary effects of the financial crisis in 2008?

A

Open market operation to buy mortgage backed securities.

B

Credit auction to lending facilities through the Term Auction Facility (TAF).

C

Open market operation to buy short-term treasury bills.

D

Interest paid on reserves.

E

Lending facilities providing money directly to the money market.