1. Consider the content of "The Fed Is In the Red. Here's Why" WSJ video.What were the primary components of the balance sheet of the Federal Reserve prior to the 2008 financial crisis? How did Federal Reserve policy response to the 2008 financial crisis and 2020 pandemic alter the makeup of the balance sheet of the Federal Reserve? Explain in detail how/why the Federal Reserve accrues profit or sustains losses.

https://www.youtube.com/watch?v=p0z_zKWJTao

2. The Federal Reserve altered its approach to managing the Fed Funds rate and the money supply by implementing Interest on Excess Reserves - IOER. Consider the contents of the New Fed Tool Kit video. Fully explain how interest on excess reserves operates as the primary tool used by the Fed.

https://www.youtube.com/watch?v=Oz5hNemSdWc