Solved

One Feature of the Second Round of QE ("QE2") Was

Question 122

Multiple Choice

One feature of the second round of QE ("QE2") was that the Fed engaged in "forward commitment," by pre-announcing exactly the quantity of bonds it was going to buy and for how long the buying would last. This change in policy was intended to:


A) Give the Fed ample flexibility to change its policy
B) Stabilize the prices of bonds in the open market
C) Limit the duration of the easy monetary policy stance of the Fed
D) Enhance the banks' willingness to lend out their reserves

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents