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