Since the ﬁnancial crisis of 2008, the main tool of expansionary monetary policy used by the Fed has been
A) changes in reserve requirements.
B) quantitative easing.
C) tariffs and fees.
D) too-big-to-fail.

Question

Quizplus · Accepted Answer

Since the 2008 financial crisis, the main tool of expansionary monetary policy used by the Fed has been quantitative easing, which involves buying large quantities of financial assets, such as bonds, in order to increase the money supply and stimulate economic growth. Changes in reserve requirements, tariffs and fees, and too-big-to-fail are not typically used by the Fed as tools of expansionary monetary policy.

Since the ﬁNancial Crisis of 2008, the Main Tool of Expansionary