In 2008,the Fed Created a New Policy Tool Called

Multiple Choice

In 2008,the Fed created a new policy tool called

A) quantitative easing,which allowed the Fed to buy private securities as well as government securities.
B) quantitative easing,which required the Fed to pay interest on required reserves.
C) open market operations,which required the Fed to buy securities from only the federal government.
D) federal funds zero-rate,which required the Fed to lower the rate to near zero percent.
E) interest rate reductions,which allowed the Fed to lower interest rates paid to banks.