Which of the following is an example of the Fed's use of unconventional monetary policy?

Question

Quizplus · Accepted Answer

All of the choices given (buying assets other than Treasury bills, participating in rescue operations for troubled financial institutions, and lending massive amounts to banks and other financial institutions) are examples of the Fed's use of unconventional monetary policy. Normally, the Fed primarily uses traditional monetary policy tools, such as setting interest rates, to influence the economy. However, during times of economic stress or crisis, the Fed may turn to unconventional policies to support financial markets or stimulate economic growth.

Which of the Following Is an Example of the Fed's