With the federal funds rate near zero and the economy still struggling,In response to already low interest rates doing little to stimulate the economy,the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low.This policy is known as

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Quizplus · Accepted Answer

The policy described of buying long-term Treasury notes and mortgage-backed securities to keep interest rates low is known as quantitative easing. This policy is used when traditional monetary policy tools (like adjusting the federal funds rate) are no longer effective.

With the Federal Funds Rate near Zero and the Economy