When Ben Bernanke referred to the exit strategy of the Fed, he was referring to:

Question

Quizplus · Accepted Answer

The exit strategy refers to how the Fed will unwind its balance sheet and reduce the amount of assets it has purchased during its quantitative easing program. This is done to avoid inflation and stabilize the overall economy. The other options are not correct, as Bernanke's retirement is a personal matter and not related to the Fed's policy, the Fed never completely stops implementing monetary policy, and increasing the federal funds rate is only one tool in the Fed's policy toolkit.

When Ben Bernanke Referred to the Exit Strategy of the Fed