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What was one benefit and one cost of the Fed’s unusual step of buying long-term securities following the financial crisis of 2008–2009? pls I need is asap for my economic class

Sagot :

chilljain33

Federal bought good quality securities at lower prices during financial crisis. They also had to bear the cost of losing money on some stocks that lost capitalization due to the crisis.

What is financial crisis?

Financial crisis in the economy refers to increased prices of goods and decrease in the market capitalization due to a decline in the economy. Federal bought securities for long-term during 2008 financial crisis.

The benefit of buying this dip was that federal was able to invest in quality stocks at discounted prices. However, it also lost money in companies which could not survive after the end of the financial crisis.

Hence, the benefits and costs of Federal's purchases during the financial crisis of 2008-09 are as aforementioned.

Learn more about financial crisis here:

https://brainly.com/question/14377894

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