In the aftermath of the financial crisis that began in 2008, the Fed's assets and liabilities on its balance sheet:
A) grew to $100 billion.
B) shrank to almost zero.
C) grew to over $2 trillion.
D) stayed more or less the same.
E) grew to about $1 trillion.

Question

Quizplus · Accepted Answer

The Fed's assets and liabilities on its balance sheet grew drastically in response to the financial crisis, reaching over $2 trillion. The Fed engaged in various programs to provide liquidity to financial markets and support the economy, including purchasing large amounts of mortgage-backed securities and other assets. This resulted in a significant increase in the size of its balance sheet.

In the Aftermath of the Financial Crisis That Began in 2008