The monetary policy in which the Fed purchased assets other than short-term government securities is called:
A) maturity transformation.
B) shadow banking.
C) quantitative easing.
D) debt overhang.

Question

Quizplus · Accepted Answer

Quantitative easing is the monetary policy in which the Fed purchases assets other than short-term government securities in order to increase the money supply and stimulate economic growth. This can include purchases of longer-term government bonds, mortgage-backed securities, and even corporate debt. The aim is to lower long-term interest rates and increase liquidity in the market.

The Monetary Policy in Which the Fed Purchased Assets Other