Quantitative Easing Increases All the Following Except

question 112

Multiple Choice

Quantitative easing increases all the following except

• A)interest rates.
• B)reserves.
• C)the monetary base.
• D)the money supply.
• E)the size of the Fed's balance sheet.

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Definitions:

Current Yield

The annual income (interest or dividends) from an investment, expressed as a percentage of the current price of the investment.

Trading

The act of buying, selling, or exchanging financial assets like stocks, bonds, or commodities in financial markets.

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over a specified period until maturity, at which point the face value is repaid.

Current Yield

The annual income (interest or dividends) earned from an investment, expressed as a percentage of the current market price.