During 2008-2013, the Fed Initiated Several Rounds of "Quantitative Easing

question 92

Multiple Choice

During 2008-2013, the Fed initiated several rounds of "quantitative easing."  Under this policy, the Fed

• A) increased its purchases of financial assets and thereby injected additional reserves into the banking system.
• B) increased its purchases of financial assets, which reduced the reserves available to the banking system.
• C) reduced its purchases of financial assets and thereby injected additional reserves into the banking system.
• D) reduced its purchases of financial assets and thereby reduced the quantity of reserves available to the banking system.