When the Fed embarked on a policy known as quantitative easing,they

Question

Quizplus · Accepted Answer

Quantitative easing involved the purchase of longer-term securities than are usually bought in open market operations. This allowed the Fed to inject liquidity into the markets and drive down long-term interest rates. Option A refers to the Fed's standard tool for monetary policy, not quantitative easing. Option B refers to a reduction in the reserve requirement, which is a separate policy tool. Option D may be true, but it is not specific to quantitative easing.

When the Fed Embarked on a Policy Known as Quantitative