Unconventional monetary policies by a central bank involve
A) the purchase of long-term government bonds with new money.
B) the sale of long-term government bonds for foreign exchange.
C) the purchase of long-term government bonds using foreign exchange.
D) raising reserve requirements by commercial banks.
E) selling gold reserves.

Question

Quizplus · Accepted Answer

Unconventional monetary policies typically involve central banks purchasing long-term government bonds with newly created money, a process known as quantitative easing. This is aimed at increasing the money supply and stimulating economic growth. Choices B, C, D, and E are not typically considered unconventional monetary policy measures.

Unconventional Monetary Policies by a Central Bank Involve