When the Federal Reserve Bank is aggressively buying huge amounts of U.S. government  bonds, offering great low-cost deals on Repos to all U.S. banks, and if they are increasing the amount of  electronic money to all U.S. banks, then what is happening to mortgage interest rates?

Answer rating: 100% (QA)

When the Federal Reserve Bank engages in the actions you described its generally trying to stimulate the economy by increasing the money supply and lo... View the full answer