Re: The Fed knows that a certain level of financial stability
[#permalink]
17 Feb 2021, 10:41
The sentence is trying to say that , the Fed can ensure financial stability by lowering interest rate; however, if the fed uses this "lowering interest" approach heavily, this approach will lose its effect of getting stability which then leads to financial crisis.
the second sentence tells more "it risks losing its most reliable means of _________ a crisis."
It in the first refers to The Fed, and its refers to "lowering interest rates"
ONLY D and F work here.