Fannie and Freddie are government agencies that were created with the purpose of enhancing liquidity in the mortgage market. True False which of the following statements is not true regarding quantitative easing (QE A): quantitative easing was the largest economic stimulus program in world history quantitative easing refers to the massive increase in direct spending by the federal government during the financial crisis. "Operation Twist" took place during one of the phases of QE QE1 did not work because banks were holding excess reserves suppose the fed purchased $100 billion worth of treasury securities. Assuming households and banks don't keep excess reserves, the supply of money would eventually increase by more than $100 billion less than $100 billion $100 billion. The fed's purchase of treasury securities does not change money supply as the money gets deposited directly in the U.S. Treasury s account. One of the reasons AIG was bailed out while other financial institutions were allowed to fail was that they were facing bankruptcy due to a problem of solvency, not liquidity, SO the bailout was considered to be "low risk" for taxpayers True False The fed's March 2008 bailout of AIG was the first in what would become a series of large bailouts during the financial crisis True False