Homework: Federal Reserve & the Great Recession Analysis
Choose 1 of the following topics related to the Great Recession:
a. The housing price bubble, collapse, foreclosures, bailout of underwater mortgages
b. Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG
c. The banking industry crisis, bailout of commercial and investment banks
Write a 350 to 700 words analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:
a. Quantitative easing
b. Purchase of toxic assets from financial institutions
c. Paying interest on reserve balances
Address the following in your analysis:
a. Actions taken by the Federal Reserve to mitigate the crisis
b. How the corrective action helped to restore stability to the financial system
c. How the corrective action should prevent recurrence of a similar crisis
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.