Quantitative easing involved Fed purchases of long term securities rather than short term securities.

Question

Quantitative easing involved Fed purchases of long term securities rather than short term securities.​

Quizplus · Accepted Answer

Quantitative easing (QE) involves the purchase of long-term securities, such as government bonds or mortgage-backed securities, from banks and other financial institutions in order to increase the money supply and encourage lending. This is in contrast to traditional monetary policy, which typically involves the purchase or sale of short-term securities, such as Treasury bills.

Quantitative Easing Involved Fed Purchases of Long Term Securities Rather