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'Quantitative Easing' Refers to the Action of the Central Bank

Question 84

Multiple Choice
'Quantitative easing' refers to the action of the central bank:

'Quantitative easing' refers to the action of the central bank:


A) to commence open market operations by buying short-term Treasury securities.
B) to add to the effect of a contractionary monetary policy using an increase in the money supply.
C) to offset the effect of a very high cash rate.
D) to buy long-term Treasury notes, when the cash rate can no longer be lowered.

Correct Answer:

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