The rapid increase in bank reserves that began in 2008 was a result of

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The rapid increase in bank reserves that began in 2008 was a result of the Fed purchasing assets through its quantitative easing program. This program involved the Fed buying large quantities of government bonds and mortgage-backed securities from banks and other financial institutions, which increased the amount of reserves in the banking system. The goal of this policy was to stimulate lending and economic growth by lowering interest rates and increasing the availability of credit.

The Rapid Increase in Bank Reserves That Began in 2008