When the Fed embarked on a policy known as quantitative easing,they
A)slowly lowered the federal funds rate target until it was equal to zero.
B)reduced the required reserve ratio by one-quarter point per month for 12 months.
C)bought longer-term securities than are usually bought in open market operations.
D)opened up lending to primary dealers,commercial banks,and investment banks.

Question

Quizplus · Accepted Answer

When the Fed embarked on quantitative easing, it bought longer-term securities (such as Treasury bonds and mortgage-backed securities) than are usually bought in open market operations. This was done in order to inject more money into the economy and encourage lending and investment.

When the Fed Embarked on a Policy Known as Quantitative