At the start of the 2008/2009 financial crisis, the fed supplied reserves to the banks in an attempt to pump reserves into the banking system. Therefore, the option C holds true.
Bank reserves can be referred to or considered as the free flow of liquid cash that a bank keeps with itself as a part of the emergency situation resolution.
During the time of a financial crisis, the bank reserves are usually down. In this case, the central bank increases the supply of reserves in order to make certain that the banks in the country do not experience a collapse.
Therefore, the option C holds true and states regarding the significance of the bank reserves.
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The question seems to be incomplete. It has been added below.
At the start of the 2008/2009 financial crisis, the fed ________ in an attempt to pump reserves into the banking system.
A. Took debts
B. Printed less currency
C. Supplied reserves
D. Distributed bonds
