Explain how an incomplete understanding at the Federal Reserve of the relationship between the central banks balance

Question:

Explain how an incomplete understanding at the Federal Reserve of the relationship between the central bank’s and the money supply contributed to the Great Depression. How did the Fed’s behavior during the financial crisis of 2007-2009 illustrate that it had learned a valuable lesson from the Great Depression?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...