Quantitative Easing Occurs When the Central Bank

question 10

Multiple Choice

Quantitative easing occurs when the central bank

• A) purchases long-term assets.
• B) purchases short-term assets.
• C) engages in open market operations.
• D) performs a helicopter drop.
• E) increases its interest rate target.

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Definitions:

Arithmetic Mean

The sum of a collection of numbers divided by the count of numbers in the collection, commonly known as the average.

Midrange

The statistical measure calculated by taking the average of the highest and lowest values in a data set.

Mode

The value that appears most frequently in a data set.

Sample Mean

The average value calculated from a sample, intended to estimate the population mean from which the sample was drawn.