The purchase of private sector assets by the central bank in critical markets is known as ________.
A) quantitative easing
B) conditional statements about the future path of the policy rate
C) managing interest rate expectations
D) credit easing

Question

Quizplus · Accepted Answer

The purchase of private sector assets by the central bank in critical markets is known as credit easing. Quantitative easing refers to the purchase of government bonds or other securities in order to increase the money supply and stimulate economic growth. Conditional statements about the future path of the policy rate and managing interest rate expectations are tools used by central banks to communicate their monetary policy decisions to the public.

The Purchase of Private Sector Assets by the Central Bank