Which of the following policy tools did the Fed create in 2008 to address the financial crisis?
I.quantitative easing
Ii.credit easing
Iii.open market operations
A)i and ii
B)i only
C)ii only
D)i and iii
E)ii and iii

Question

Quizplus · Accepted Answer

Quantitative easing and credit easing were both introduced by the Fed in 2008 to address the financial crisis. Quantitative easing involves large-scale purchases of securities to increase the money supply, while credit easing focuses on improving the functioning of credit markets. Open market operations are a traditional tool used by the Fed and were not specifically created in 2008.

Which of the Following Policy Tools Did the Fed Create