In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U. S. financial system by loaning money to banks. This action was to encourage a (n) ?

Question

Rylie Mercer

Social Studies

7 December, 11:22

In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U. S. financial system by loaning money to banks. This action was to encourage a (n) ?

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Answers (1)

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Konnor Garner · Answer 1

The action was to encourage market liquidity, expansionary monetary policy. The action is also for fighting recession and financial crisis.

Explanation:

Central Bank of America, through the Federal Reserve banking system are saddled with the responsibility of regulating other Banks and fighting recession. They are responsible for stabilizing financial system.

The Federal reserve made credit more available within the U. S. financial system by loaning money to banks. With this, banks has to lower their loan rates. Banks lowering their loan rates will make people to borrow more business loans thereby creating more companies and hiring others to work.