Compared to typical open-market operations, when pursuing quantitative easing, Federal Reserve purchases tended to be _____ securities.
A) safer and shorter-term
B) tax-favored and foreign
C) smaller-denomination and higher-grade
D) riskier and longer-term

Question

Quizplus · Accepted Answer

Quantitative easing involves the purchase of longer-term and riskier securities such as government bonds, mortgage-backed securities, and corporate bonds. This is in contrast to typical open-market operations where the Fed purchases shorter-term and safer securities such as Treasury bills.

Compared to Typical Open-Market Operations, When Pursuing Quantitative Easing, Federal