Both open market purchases and quantitative easing are directed at increasing reserves in the banking system and increasing the money supply.

Name: Both open market purchases and quantitative easing are directed at increasing reserves in the banking system and increasing the money supply.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

Both open market purchases and quantitative easing involve the central bank buying financial assets, which increases reserves in the banking system and ultimately increases the money supply.

Both Open Market Purchases and Quantitative Easing Are Directed at Increasing