What was the impact of quantitative easing?
A) Europe and the US created new money electronically
B) There was too much money for banks to use
C) It triggered a new lending mania to developing countries
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

Quantitative easing involved central banks in Europe and the US creating new money electronically to buy government bonds and other financial assets, which increased the money supply and liquidity in the banking system. This led to banks having more money than they could effectively use for lending within their domestic markets, contributing to increased lending and investment in developing countries as banks sought higher returns.

What Was the Impact of Quantitative Easing