Final answer:
The purchase of direct debt and mortgage-backed securities by the Federal Reserve in November 2008 is referred to as quantitative easing, aimed at stabilizing the financial system during the recession.
Step-by-step explanation:
The purchase of direct debt and mortgage-backed securities by the Federal Reserve in November 2008 is referred to as quantitative easing. During the financial crisis, which precipitated the recession, mortgage-backed securities became known as "toxic assets" due to uncertainty around their value after the housing market collapse. By purchasing these securities, the Fed aimed to push down long-term interest rates and remove toxic assets from the balance sheets of financial institutions, thereby strengthening the financial system. Quantitative easing (QE) took place over three episodes, with the first round beginning in November 2008, when the Fed purchased $600 billion in mortgage-backed securities from Fannie Mae and Freddie Mac.