How did the Fed's conduct of open market operations change during the economic crisis of 2008?
A) Open market operations are no longer the most common tool that the Fed utilizes.
B) The Fed now buys and sells a broader range of assets than only government securities.
C) The Federal Open Market Committee cannot act without the approval of the Treasury.
D) The Fed now must have adequate funds available before purchasing government securities.

Question

Quizplus · Accepted Answer

During the economic crisis of 2008, the Fed's conduct of open market operations changed in that they began to buy and sell a broader range of assets than just government securities. This included purchases of mortgage-backed securities and other securities from non-bank institutions in an effort to increase liquidity in the financial system.

How Did the Fed's Conduct of Open Market Operations Change