The Fed started four rounds of QE in 2008 to combat the financial crisis. From December 2008 to October 2014, they existed. Because its other tools for expanding monetary policy had run out, the Fed turned to quantitative easing (QE). Both the discount rate and the Fed funds rate were 0.
When the value of financial assets and instruments significantly drops, a financial crisis has occurred. As a result, companies struggle to pay their debts, and financial institutions are unable to fund projects or meet urgent needs due to a lack of available cash or convertible assets.
Any situation where important financial assets, like stocks or real estate, suddenly experience a sharp decline in value is generally referred to as a financial crisis. Periods of economic boom and excessive lending to borrowers frequently precede them.
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