The Fed's open market operations normally involve only the purchase of government securities,particularly those that are short-term. However,during the crisis,the Fed started new programs to purchase
A)mortgage-backed securities and long-term Treasuries.
B)mortgage-backed securities and Treasury bills.
C)commercial papers and short-term Treasuries.
D)Treasury bills and Treasury notes.

Question

Quizplus · Accepted Answer

During the crisis, the Fed started new programs such as the Quantitative Easing (QE) to purchase government-sponsored entity (GSE) mortgage-backed securities and long-term Treasuries to inject liquidity into the economy and drive down long-term interest rates.

The Fed's Open Market Operations Normally Involve Only the Purchase