Compounding refers directly to answers:
a. finding the future value of a present sum of money.
b. changes in the interest rate over time on a bank account or a similar savings vehicle.
c. interest being earned on previously-earned interest.
d. finding the present value of a future sum of money.

The correct answer is b

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.