Why Did the Monetary Base Increase Rapidly During the Economic

Multiple Choice

Why did the monetary base increase rapidly during the economic crisis of 2008?

A) The Fed sold financial assets and extended fewer loans.
B) The Fed increased both its purchase of assets and quantity of loans extended.
C) The Fed increased its purchases of assets, but offset this with an increase in the reserve requirement.
D) The Fed sold financial assets, but offset this with a reduction in the reserve requirement.