Discuss what assets and liabilities are contained in the balance sheet of the Federal Reserve System Explain what quantitative easing is, how it affects the Feds balance sheet, and how the use of quantitative easing is intended to affect the term and risk premiums Finally, discuss the evidence that...

The Federal Reserve Systems assets are primarily the government and private sector securities that i ...

Discuss what assets and liabilities are contained in the balance sheet of the Federal Reserve System. Explain

Question:

Discuss what assets and liabilities are contained in the of the Federal Reserve System. Explain what quantitative easing is, how it affects the Fed’s and how the use of quantitative easing is intended to affect the term and risk premiums. Finally, discuss the evidence that indicates that the Fed engaged in quantitative easing during and following the financial crisis in the fall of 2008.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...