During the Financial Crisis of 2007-2009, Why Did the Federal

Multiple Choice

During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?

A) The federal funds rate had already been increased as much as possible.
B) The discount rate had already been increased as much as possible.
C) The federal funds rate had already been reduced to zero.
D) The discount rate had already been reduced to zero.