Only one of the following non traditional monetary tools has been used as a policy response to both Great Recession and Covid-19 recession. Which one?

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Question restatement: The prompt asks which non-traditional monetary tool was used as a policy response to both the Great Recession and the Covid-19 recession.
Option 1: QE: Quantitative Easing
This tool involves central banks purchasing longer-term securities to inject liquidity into the financial system, lowering longer-term interest rates and supporting markets. It has indeed been a hallmark of post-crisis policy responses in both the Great Recession (2008-2009) and the Covid-19 downturn (2020), making it a consistent instrument across crises.
Option 2: Main Street lending Program
The Main Street Lending Program was a specific facility created during the Covid-19 outbreak to support small and mid-sized businesses, but it did not exist during the Great Recession. Therefore, it cannot be the tool used in both crises.
Option 3: Primary and Secondary Market Corporate Credit Facility
These facilities were part of the Covid-19 response to backstop corporate credit markets. They did not exist during the Great Recession, which means they were not used in both crises.
Option 4: Relaxing Liquidity & Capital requirements
Relaxing liquidity and capital requirements for banks was more characteristic of crisis-specific regulatory forbearance measures, but the broad, well-documented non-traditional monetary policy used in both episodes is predominantly asset purchases (QE). Moreover, while some regulatory expectations were eased during Covid-19, the central, common instrument across both episodes is not best described by simply relaxing requirements.
Synthesis: Among the listed options, the instrument that spans both crises as a common tool is quantitative easing (QE). The other choices either emerged in only one of the crises or refer to policies that were not consistently deployed in both episodes.

W25 ECON D001 52Z Prin Macroeconomics FinalExamECON1

Only one of the following non traditional monetary tools has been used as a policy response to both Great Recession and Covid-19 recession. Which one?

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