Which of the Following Is TRUE of the Federal Reserve's

Multiple Choice

Which of the following is TRUE of the Federal Reserve's response to the banking crises of the 1930s and 2008?

A) In both crises, the Fed acted aggressively as a lender of last resort and to guarantee liabilities of troubled banks.
B) In both crises, the Fed failed to use its power to act as a lender of last resort or to guarantee liabilities of troubled banks.
C) In the 1930s the Fed acted aggressively as a lender of last resort and to guarantee liabilities of troubled banks, but it did not act in 2008.
D) In 2008 the Fed acted aggressively as a lender of last resort and to guarantee liabilities of troubled banks, but it did not act in the 1930s.