The USFederal Reserve and the US Treasury Responded to the 2008

Multiple Choice

The U.S.Federal Reserve and the US Treasury responded to the 2008 financial crisis in several ways.Which of the following is not one of the ways the Fed and the Treasury responded?

A) The Fed made investment banks eligible for discount loans.
B) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.
C) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves.
D) The Fed helped JP Morgan to acquire Bear Stearns, a nearly bankrupt investment bank.
E) The Treasury had the federal government take control of Fannie Mae and Freddie Mac.