Forward guidance refers to:
A)a process similar to open-market purchases.
B)a process similar to open-market sales.
C)information that a central bank provides to the financial markets regarding its expected future monetary policy path.
D)lending of reserves by the Federal Reserve to commercial banks.

Question

Quizplus · Accepted Answer

Similar to open-market purchases, quantitative easing (QE)an expansionary monetary policy in which a central bank buys long-term financial assets. The goal of quantitative easing is to lower the yield or return of those assets and increase the money supply.

Forward Guidance Refers To