Since the end of 2008,the Federal Reserve has adopted an unconventional monetary tool called
A)quantitative easing.
B)open market operation.
C)change required reserve ratio.
D)discount loan.

Question

Quizplus · Accepted Answer

The Federal Reserve began its unconventional monetary policy of quantitative easing in late 2008 in response to the global financial crisis. Quantitative easing involves the purchase of large quantities of government bonds and other securities from banks and other financial institutions, with the aim of increasing the supply of money and lowering interest rates. This policy was implemented in order to stimulate lending and borrowing, boost investment and consumption, and prevent deflation. Therefore, choice A is the correct answer. The other options listed are traditional monetary policy tools that the Federal Reserve has used in the past, but they do not represent the current unconventional policy of quantitative easing.

Since the End of 2008,the Federal Reserve Has Adopted an Unconventional