Which of the following statements about quantitative easing (or "QE") and open-market purchase is true?
A) QE is similar to open-market purchase in that both are aimed at reducing short-term interest rates in the economy.
B) QE is different from open-market purchase in that QE involves not just T-bonds but also bonds issued by other government agencies and government-backed corporations.
C) QE is done by the U.S. Treasury, whereas open-market purchase is done by the Federal Reserve System.
D) QE has to have Congressional approval, whereas open-market purchase does not.
Correct Answer:
Verified
Q320: Q321: When the Federal Reserve acts to tighten Q322: What is one of the advantages of Q323: In the recent financial and economic crises, Q324: The ZIRP (zero interest rate policy) of Q326: Compared to fiscal policy, monetary policy has Q327: If the Fed is trying to make Q328: Which of the following is considered a Q329: In 2008, at the depth of the Q330: Assume that the MPC is 0.75 and![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents