Before the Financial Crisis of 2008, Restrictive Monetary Policy by the Fed

Multiple Choice

Before the financial crisis of 2008, restrictive monetary policy by the Fed involved

A) raising the target federal funds rate and using an open-market sale of bonds to adjust bank reserves and thereby raise the federal funds rate to hit its target.
B) raising the target federal funds rate and using an open-market purchase of bonds to adjust bank reserves and thereby raise the federal funds rate to hit its target.
C) reducing the target federal funds rate and using an open-market sale of bonds to adjust bank reserves and thereby lower the federal funds rate to hit its target.
D) reducing the target federal funds rate and using an open-market purchase of bonds to adjust bank reserves and thereby lower the federal funds rate to hit its target.