QUESTIONS Central banks around the world saw the Financial Crisis of 2007-2009 coming but could not prevent it. did not see the Financial Crisis of 2007-2009 coming but had processes in place to prevent it saw the Financial Crisis of 2007-2009 coming and tried to prevent it. did not see the Financial Crisis of 2007-2009 coming and were not able to prevent it. QUESTION 6 Consider a $2 billion open market purchase of u.s. Treasury securities by the Federal Reserve. The Fed's balance sheet will show an increase in the asset category of securities and the liability category of reserves by $2 billion only an increase in the asset of securities of $2 billion. no change in the size of the balance sheet just the composition of assets will change from cash to securities. only show an increase in the liability of reserves of $2 billion