Quantitative easing is regarded as an unconventional form of monetary policy because it targets the ________.
A) the price of liquidity
B) the overnight interest rate
C) the amount of liquidity provided by the central bank instead of targeting the price of liquidity
D) settlement balances

Question

Quizplus · Accepted Answer

Quantitative easing targets the amount of liquidity provided by the central bank rather than targeting the price of liquidity, which is a more conventional form of monetary policy. This is why it is considered an unconventional form of monetary policy.

Quantitative Easing Is Regarded as an Unconventional Form of Monetary