Recall the Application about the Fed's expanded involvement in the economy following the financial crisis in 2008 to answer the following question(s).
-According to the Application, in 2010 the Fed
A) the Fed ended its support of the mortgage market.
B) the Fed converted all its assets to cash.
C) held over $1 trillion in mortgage-backed securities.
D) stopped trading in Treasury securities.

Question

Quizplus · Accepted Answer

The application states that in 2010, the Fed held over $1 trillion in mortgage-backed securities, which indicates that it continued its support of the mortgage market. Therefore, option A is incorrect. The application does not provide any information to support options B or D, making them incorrect choices.

Recall the Application About the Fed's Expanded Involvement in the Economy