The main difference between regular open-market operations and quantitative easing (QE)is:
A)whether the Fed is buying or selling financial assets.
B)the type and term of the financial assets targeted.
C)whether the Fed is trying to increase or decrease interest rates.
D)that open-market operations is conducted by the Fed, while quantitative easing is mandated by Congress.

Question

Quizplus · Accepted Answer

Quantitative easing (QE)an expansionary monetary policy in which a central bank buys financial assets to lower the yield or return of those assets and increase the money supply. Unlike regular open-market purchases that target short-term government bonds, quantitative easing involves long-term assets, commercial debt, and mortgage backed securities (MBS).

The Main Difference Between Regular Open-Market Operations and Quantitative Easing