The Fed allowed nonbank financial institutions to borrow money from the discount window during the mortgage crisis and even allowed nonbanks to swap mortgages for Treasury securities$.$ This was an attempt by the Fed to reduce $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ at institutions.

Question $9$Answer

a$.$

liquidity risk

b$.$

diversifiable risk

c$.$

operational risk

d$.$

technological risk

e$.$

foreign exchange risk