In terms of the mechanics of quantitative easing,
A)quantitative easing formally changes interest rates; open-market operations only influence rates.
B)it works the same as open-market operations.
C)it differs from open-market operations in that the securities purchases occur directly from households.
D)it only changes the interest rate; it doesn't influence bank reserves.

Question

Quizplus · Accepted Answer

Quantitative easing (QE) is similar to open-market operations in that both involve the central bank purchasing securities to increase the money supply and lower interest rates. However, QE is typically used when interest rates are already near zero and involves purchasing longer-term securities to further stimulate the economy.

In Terms of the Mechanics of Quantitative Easing