Quantitative easing is an example of monetary policy, which is generally used when interest rates are vlues During the 2008 credit crisis, market values of mortgage-backed securities had mortgages. In an attempt to restore investor faith in the securities, the Federal Reserve engaged in mortgage-backed securities. Consequently, the prices of these securities risky debt securities, which resulted in liquidity in the market for these securities. zero. substantially due to the default rate on by and investors began to purchase the

Quantitative easing is an example of monetary policy, which is generally used when interest rates are During the 2008 credit crisis, market vilues of mortgage-bscked securities had substaniallir due to the defout rote on mortgages. In an attempt to restore investor faith in the securities, the federal Reserve engaged in mortgage-becked securties. Consequently, the prices of these securkies , and investors began to purchase the risky debt securities, which resulted in flquidity in the manket for these securnies