The Fed policy of buying bonds,adding to bank reserves,can be referred to by any of the following terms EXCEPT:
A) quantitative easing.
B) expansionary monetary policy.
C) tight money policy.
D) easy money policy.

Question

Quizplus · Accepted Answer

The Fed policy of buying bonds and adding to bank reserves is not referred to as a tight money policy. Tight money policy refers to Fed policy that reduces the money supply and increases interest rates in order to slow down inflation. The other options, quantitative easing, expansionary monetary policy, and easy money policy, all refer to the policy of buying bonds and adding to bank reserves, which increases the money supply and is aimed at stimulating economic growth.

The Fed Policy of Buying Bonds,adding to Bank Reserves,can Be