One feature of the second round of QE ("QE2") was that the Fed engaged in "forward commitment," by pre-announcing exactly the quantity of bonds it was going to buy and for how long the buying would last. This change in policy was intended to:
A) Give the Fed ample flexibility to change its policy
B) Stabilize the prices of bonds in the open market
C) Limit the duration of the easy monetary policy stance of the Fed
D) Enhance the banks' willingness to lend out their reserves
Correct Answer:
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