Choose 1 of the following topics related to the Great Recession:

The housing price bubble, collapse, foreclosures, bailout of underwater mortgages
Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG
The banking industry crisis, bailout of commercial and investment banks

Write a 350- to 700-word analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:

Quantitative easing
Purchase of toxic assets from financial institutions
Paying interest on reserve balances

Address the following in your analysis:

Actions taken by the Federal Reserve to mitigate the crisis
How the corrective action helped to restore stability to the financial system
How the corrective action should prevent recurrence of a similar crisis

Note: Use of charts and graphs is encouraged with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St. Louis FRED website may only be included when the data sources used by FRED are US government sources such as the Bureau of Economic Analysis or the Bureau of Labor Statistics. 
Cite at least 2 academically credible sources.  
Format your assignment according to APA guidelines.