The Fed purchases of long-term assets to stabilize financial markets,reduce long-term interest rates,and improve the investment environment are called:
A)structural adjustments.
B)financial strengthening.
C)quantitative easing.
D)inflation targeting.
E)stress testing.

Question

Quizplus · Accepted Answer

The Fed purchase of long-term assets to stabilize financial markets, reduce long-term interest rates, and improve the investment environment is known as quantitative easing. This policy involves the purchase of government bonds and sometimes other financial assets, resulting in an increase in the money supply which attempts to stimulate economic growth.

The Fed Purchases of Long-Term Assets to Stabilize Financial Markets,reduce