Asked by Rachel Jordan on Jun 15, 2024
Verified
Between September 2007 and December 2008,the Federal Reserve
A) did not change interest rates at all.
B) raised interest rates from nearly 0 percent to 4.75 percent.
C) raised interest rates from 4.75 percent to 9.5 percent.
D) cut interest rates from 4.75 percent to nearly 0 percent.
Federal Reserve
The central banking system of the United States, responsible for monetary policy, regulation of banks, and stability of the financial system.
Interest Rates
The amount charged, expressed as a percentage of principal, by lenders to borrowers for the use of money as a loan, influencing economic activity.
- Understand the roles and authorities of the Federal Reserve in regulating the U.S. economy.
- Understand the principle of the federal funds rate and its effects on the economic landscape.
Verified Answer
SD
Sabrina DanelleJun 19, 2024
Final Answer :
D
Explanation :
During the mentioned period, the Federal Reserve cut interest rates from 4.75 percent to nearly 0 percent as part of its efforts to combat the effects of the global financial crisis.
Learning Objectives
- Understand the roles and authorities of the Federal Reserve in regulating the U.S. economy.
- Understand the principle of the federal funds rate and its effects on the economic landscape.