Which of the following measures did the Fed take during the financial crisis of 2008?

A) The Fed lowered the discount rate and paid interest on reserves held at the Fed.
B) The Fed increased the reserve requirement ratio.
C) The Fed sold all government securities.
D) The Fed decreased its spending.
E) The Fed increased the discount rate.

Financial Crisis

A broad term for a situation where financial assets suddenly lose a large part of their nominal value.

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks.

Reserves Interest

Interest earned on reserves held by banks at the central bank, influencing monetary policy and banking operations.