Federal Reserve and the Great Recession Analysis
Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG
Write a 350- to 700-word analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:
Quantitative easing
Purchase of toxic assets from financial institutions
Paying interest on reserve balances
Actions taken by the Federal Reserve to mitigate the crisis
How did the corrective action helped to restore stability to the financial system?
How did the corrective action should prevent recurrence of a similar crisis?
