Question

List three steps the Fed took to deal with the 2007-2009 financial crisis.

Answer 1

The Federal Reserve Bank took several steps to deal with the 2007-2009 financial crisis, including injecting money into the banking system, dropping short-term interest rates, and passing legislation to stabilize the financial market.

Step-by-step explanation:

The Federal Reserve Bank took several steps to deal with the 2007-2009 financial crisis:

1. The Fed injected money into the banking system by purchasing both traditional and nontraditional assets off banks' balance sheets. This increased the amount of funds available to lend to businesses and consumers.
2. The Fed dropped short-term interest rates to as low as zero percent. This had the effect of devaluing U.S. dollars in the global market and boosting exports.
3. The Congress and the President passed several pieces of legislation to stabilize the financial market, including the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act.