As the Fed Increased the Volume of Loans to Financial

Multiple Choice

As the Fed increased the volume of loans to financial institutions in response to the 2008 financial crisis, this resulted in

A) a vast increase in the monetary base and the excess reserves of the commercial banking system.
B) a substantial increase in short term interest rates.
C) a sharp decrease in the monetary base and a contraction in the excess reserves of the commercial banking system.
D) an increase in the volume of loans extended by commercial banks and a sharp increase in the inflation rate.