The Financial Crisis of 2008 has been one of the biggest economic and financial crisis since the Great Depression. This problem began years before 2008 and it destabilized the American and world economy to such an extent that severe measures of control had to be taken by first the Federal Reserve and then the American government. The crisis was started by a housing boom, before 2008, and the increased risk taking of financial institutions and credit lending, which reached its limits in the fall of 2008, when these institutions saw their inhability to keep on lending so much money without any limitations and they began to have to merge, or simply go into bankruptcy, to face the situation. This led to investor panic and the freezing of the market that almost brought back another Great Depression. However, both the Bush administration and the Obama administration took and implemented severe measures and policies that prevented the situation from getting worse. Among the many policies that were instituted and that increased control over the markets and the financial system, lies the following: 1. The Fed bought securities to increase the money supply, 2. The Fed lowered interest rates, hoping to increase available credit, and 3. The Fed carried out open-market operations to stimulate growth.
The actions taken by the Fed to assist banks during the financial crisis of 2008 include the following:
C. The Fed bought securities to increase the money supply.
D. The Fed lowered interest rates, hoping to increase available credit.
E. The Fed carried out open-market operations to stimulate growth.
The Fed is the Federal Reserve or the central bank of the United States. It regulates the banking industry and the money market of the economy.
The financial crisis of 2008 was triggered by the housing boom and increased risk of credit crisis caused by excessive credit lending by financial institutions.
Thus, the actions taken by the Fed to assist banks during the financial crisis of 2008 included Options C, D, and E.
Learn more about the Federal Reserve and Financial Crisis of 2008 at https://brainly.com/question/4598303 and https://brainly.com/question/25664180
