Which of the following statements about the Federal Reserves balance sheet is correct. Select all that apply. A In early 2008, the Federal Reserve held more than $890 billion of assets. B In early 2017, the Federal Reserve held nearly $4,480 billion of assets. C By late 2020, the Federal Reserve held nearly $7,150 billion of assets. D The growth of Federal Reserve assets largely occurred in response to quantitative easing. E Prior to the pandemic of 2020, the Federal Reserve began reducing their balance sheet holdings. F The fourth round of QE occurred in 2020.
Functions of the Federal Reserve System
The Federal Reserve System looks after the financial activities and operations of the banking system. It is the apex body that has complete control over the banking regulations. All the guidelines regarding the banking system, money supply, and formulation of the monetary policy come under the purview of the Federal Reserve System. The New York Fed also helps in drafting the monetary policy and supervising the financial system.
Elastic and Inelastic Markets
Measuring the change in percentage of an economic variable with respect to change in a different economic variable is known as elasticity. This change in percentage results in a change in price concerning changes in other factors. In simple terms, when one factor brings a change to another factor, it is called elasticity.
Which of the following statements about the Federal Reserves
| A |
In early 2008, the Federal Reserve held more than $890 billion of assets. |
|
| B |
In early 2017, the Federal Reserve held nearly $4,480 billion of assets. |
|
| C |
By late 2020, the Federal Reserve held nearly $7,150 billion of assets. |
|
| D |
The growth of Federal Reserve assets largely occurred in response to quantitative easing. |
|
| E |
Prior to the pandemic of 2020, the Federal Reserve began reducing their balance sheet holdings. |
|
| F |
The fourth round of QE occurred in 2020. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
