With quantitative easing,the Fed purchases _____________________.With open market operations,the Fed purchases ______________________________.

Question

Quizplus · Accepted Answer

With quantitative easing, the Fed purchases both short-term and long-term government securities, as well as private sector bonds and securities to increase the money supply and stimulate the economy. With open market operations, the Fed primarily purchases short-term government securities to adjust the federal funds rate and influence monetary policy. Therefore, choice A is the best answer as it covers both types of purchases made by the Fed.

With Quantitative Easing,the Fed Purchases _____________________