What unusual policy actions did the Fed take during the Financial Crisis of 2007-2009 that affected its balance sheet?
What will be an ideal response?
First, the Fed had purchased large amounts of mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. Second, the Fed participated in actions to save the investment bank Bear Stearns and the insurance company AIG from bankruptcy, and securities related to those actions remained on the Fed's books. Third, the Fed had participated in liquidity swaps with foreign central banks and had accumulated assets related to those swaps. Finally, the Fed had participated in a program to help the market for asset-backed securities, which are securitized loans backed by assets other than property.
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Which of the following groups were losers after the European Union's imposition of an antidumping duty on shoes imported from China?
a. European consumers and European shoe manufacturers b. Chinese consumers and Chinese shoe manufacturers c. Chinese consumers and European shoe manufacturers d. European consumers and Chinese shoe manufacturers
An increase in the wage rate ______
A. shifts the average total cost curve and the marginal cost curve upward B. shifts the average fixed cost and average variable cost curve upward C. increases average variable cost but does not change marginal cost D. does not change average variable cost but increases average total cost