When the Fed Pursues a Policy of Quantitative Easing, It

question 268

Multiple Choice

When the Fed pursues a policy of quantitative easing, it:

• A) is trying to increase interest rates.
• B) is trying to decrease inflation.
• C) purchases short-term government securities.
• D) purchases long-term debt whose interest rates are significantly above zero.

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Definitions:

Journal Entry

A record of a financial transaction in the accounting system that includes the accounts and amounts to be debited and credited.

Journal Entry

A record in accounting that documents a business transaction in the general ledger, indicating the accounts and amounts to be debited and credited.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods and services received but not yet paid for.

Interest Revenue

Earnings received for interest.