1. IF one were to read that "the [FED's] portfolio of federal bonds amassed during 2009 will swell...about doubling."This is in contrast to the FED's action to the 2007 crisis when there is a different change on the FED's balance sheet. We looked at these differences in class using the FED balance sheet postings to Blackboard.Which of the following reflects the contrasting actions best between 2007 crisis & 2009 crisis:

a. the FED expanded the money supply without expanding either the Loan or Security Portfolio on its balance sheet.

b. the FED forced gold prices to record prices to provide the collateral to print additional money.

c. the FED increased its security holdings associated with repos, acceptances, foreign securities, and foreign currencies.

b. the FED sold Treasuries from its portfolio and expanded loans to record high amounts.