Which of the following government actions would qualify as quantitative easing?

Question

Quizplus · Accepted Answer

Quantitative easing refers to the central bank purchasing securities (such as government bonds) with newly-printed money, in order to increase the money supply and stimulate economic activity. Lowering reserve requirements and interest rates are other monetary policy tools that can be used to encourage lending and spending, but they are not considered quantitative easing. Funding infrastructure projects would be considered fiscal policy, which involves government spending rather than monetary policy.

Which of the Following Government Actions Would Qualify as Quantitative