During the financial panic in late 2008, the Fed changed the allocation of assets in its balance sheet away from Treasury bonds toward bank assets.

Question

Quizplus · Accepted Answer

This is true. During the financial crisis in 2008, the Federal Reserve increased its holdings of bank assets, such as mortgage-backed securities and commercial paper, in order to provide liquidity to the banking system and stabilize financial markets. This changed the allocation of assets on the Fed's balance sheet away from mostly Treasury bonds.

During the Financial Panic in Late 2008, the Fed Changed