The Fed will most likely halt its quantitative easing program by:

Question

Quizplus · Accepted Answer

Halting quantitative easing means reducing the amount of money being injected into the economy. Selling assets from its portfolio is a way for the Fed to remove money from the economy and is the most likely way for the Fed to halt its quantitative easing program. Increasing the money supply (choice A) and lowering reserve requirements (not an option listed) would have the opposite effect of increasing the amount of money in the economy. Raising the discount rate (choice C) would increase the cost of borrowing for banks, but it is not a direct way of reducing the money supply.

The Fed Will Most Likely Halt Its Quantitative Easing Program