please help Question 14 Not yet answered Points out of 1 P F

please help

Question 14 Not yet answered Points out of 1 P Flag question The Fed\'s response to the financial crisis of 2007 and 2008 was to Select one: a. raise the reserve requirement. b. encourage discount window borrowing. c. reduce taxes on financial institutions e O d. raise the federal funds rate.

Solution

The Fed\'s response was to encourage discount window borrowing. The term \"discount window\" refers to a situation when a banker comes to a Federal Reserve teller window to borrow funds so that the bank has sufficient reserves to complete a financial transaction or to maintain its level of required reserves.So option (b) is correct.