An interesting development that happened in late 2008, relating to the fed and bank reserves, was that the fed started paying interest on the bank's reserves.
What did the federal reserve do in 2008?
They bought billions of dollars worth of stocks, mortgage securities, and bonds straight from the U.S. Treasury when the financial crisis hit.
How did the Federal Reserve respond to the financial collapse?
Credit was made more difficult by the Federal Reserve by raising interest rates. People scrambled to withdraw cash from their banks out of panic.
What was one reason the US government started a Federal Reserve system?
It was established by Congress to give the country a more secure, adaptable, and stable financial and monetary system. On December 23, 1913, President Woodrow Wilson signed the Federal Reserve Act into law, thereby establishing the Federal Reserve.
Learn more about the Late 2008 financial crisis: brainly.com/question/15869431
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