Macroeconomics 11th Edition by Michael Parkin

Exercise 21

In September 2007 before the financial crisis and recession, the Fed had assets of $800 billion, mainly short-term government securities. In June 2012 after two rounds of quantitative easing, the Fed's assets totaled $2,600 billion. Many of those assets were long-term securities and not all of them were government securities.
a. How did the Fed increase its assets to $2,600 billion in 2012Describe the transactions the Fed must undertake to increase its assets.
b. How did the monetary base change between 2007 and 2012