Because it emphasizes the fact that the process involves the purchase of certain types of private securities, the Fed uses the following related term to refer to quantitative easing.
A)A liquidity trap.
B)Credit easing.
C)Zero interest measures.
D)Liquidity easing.
E)None of these.

Question

Quizplus · Accepted Answer

The Fed uses the term "credit easing" to refer to quantitative easing because it involves the purchase of certain types of private securities, such as corporate bonds. While "liquidity easing" is a term that could be used to describe quantitative easing, it is not the term the Fed specifically uses. "A liquidity trap" and "zero interest measures" are related to monetary policy, but not specifically to quantitative easing.

Because It Emphasizes the Fact That the Process Involves the Purchase