Which of the Following Was the Result of the Federal

question 177

Multiple Choice

Which of the following was the result of the Federal Reserve's purchase of mortgage-backed securities in 2009?

• A)MBS interest rates declined, home mortgage rates declined, and the Fed turned a profit on these operations.
• B)MBS interest rates declined, home mortgage rates declined, but the Fed had a loss on these operations.
• C)MBS interest rates increased, home mortgage rates declined, and the Fed turned a profit on these operations.
• D)MBS interest rates increased, home mortgage rates increased, but the Fed had a loss on these operations.