Final answer:
The Federal Reserve's lender-of-last-resort activities during the 2007-2008 financial crisis aimed to keep credit flowing by providing emergency loans to financial institutions under stress. The correct answer is keep credit flowing.
Step-by-step explanation:
The main purpose of the Federal Reserve's lender-of-last-resort activities during the financial crisis in 2007 - 2008 was to keep credit flowing in the financial system.
The Fed made a number of short-term emergency loans to prevent the collapse of the financial system, which was under considerable stress due to bank runs and the failure of various financial institutions.
Through actions like quantitative easing, the Fed aimed to make credit available to banks and other financial institutions to ensure they could continue to function and provide loans to businesses and consumers.