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 ration 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

Quantitative easing involved the purchase of longer-term securities than are usually bought in open market operations in order to inject money into the economy and stimulate lending. A and B describe different methods of adjusting interest rates, and D refers to opening up lending facilities, which is not specific to quantitative easing.

When the Fed Embarked on a Policy Known as Quantitative