The Fed's purchases of long-term Treasury securities in recent years were intended to:
A) reduce long-term interest rates.
B) reduce interest rates on credit cards and consumer loans
C) increase the federal funds rate.
D) restore confidence in the market for these securities.

Question

Quizplus · Accepted Answer

The Fed's purchases of long-term Treasury securities were aimed at reducing long-term interest rates. The objective was to provide additional monetary stimulus by lowering borrowing costs for households and businesses, as well as encouraging more spending and investment.

The Fed's Purchases of Long-Term Treasury Securities in Recent Years