Quantitative easing
A)is an open market purchase of securities by the U.S.Federal Reserve.
B)raises the nominal interest rate.
C)decreases bank reserves.
D)is an open market sale of securities by the U.S.Federal Reserve.
E)is an open market purchase of securities by the Government of Canada.

Question

Quizplus · Accepted Answer

Quantitative easing is an open market purchase of securities by the U.S. Federal Reserve. It is a monetary policy used to stimulate the economy by increasing the money supply and lowering long-term interest rates. This is done by the Federal Reserve acquiring government bonds or other assets from banks, injecting cash into the economy in exchange for those assets.

Quantitative Easing