In response to the financial crisis,the Fed's balance sheet allocation changed from one consisting of about 90% in safe Treasury securities to one with nearly half in riskier assets such as mortgage-backed securities.

Question

Quizplus · Accepted Answer

This statement is true. During the financial crisis, the Federal Reserve implemented policies such as quantitative easing, which led to an increase in the purchase of riskier assets such as mortgage-backed securities. As a result, the Fed's balance sheet allocation shifted from mostly consisting of safe Treasury securities to a mix of both safe and riskier assets.

In Response to the Financial Crisis,the Fed's Balance Sheet Allocation