The main difference between quantitative easing and credit easing is that:
A)quantitative easing changes the mix of the Fed's holdings, credit easing does not.
B)credit easing changes the quality of the Fed's holdings, quantitative easing does not.
C)credit easing shifts long-term interest rates down while quantitative easing shifts them up.
D)There is no difference since both add credit to the economy.

Question

Quizplus · Accepted Answer

Credit easing specifically targets the quality and type of assets the central bank acquires, aiming to improve the functioning of particular credit markets, whereas quantitative easing primarily focuses on increasing the money supply by purchasing government securities, without necessarily changing the composition of assets held by the central bank based on their risk or type.

The Main Difference Between Quantitative Easing and Credit Easing Is