Which of the following is a difference between "quantitative easing" and ordinary open-market operations?
A)There is no difference between the two policy tools.
B)Open-market operations are focused exclusively on U.S.government bonds; quantitative easing also includes the buying and selling of debt issued by government agencies and government-sponsored entities.
C)Quantitative easing is done in order to lower interest rates; open-market operations are merely intended to increase bank reserves.
D)Open-market operations involve forward commitment; quantitative easing is intentionally vague to maintain flexibility.

Question

Quizplus · Accepted Answer

Quantitative easing involves the purchase of a broader range of assets, including government agency and government-sponsored entity debt, whereas ordinary open-market operations typically focus on short-term government securities.

Which of the Following Is a Difference Between "Quantitative Easing