The Fed Purchases of Long-Term Assets to Stabilize Financial Markets,reduce

question 124

Multiple Choice

The Fed purchases of long-term assets to stabilize financial markets,reduce long-term interest rates,and improve the investment environment are called:

• A)structural adjustments.
• B)financial strengthening.
• C)quantitative easing.
• D)inflation targeting.
• E)stress testing.

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Definitions:

Foreign Currency Translation

The process of converting the financial results of a company's foreign operations into the reporting currency of the parent company.

Deferred Tax Liability

A tax obligation that a company owes but has not yet paid, arising from temporary differences between its taxable income and its accounting earnings.

Partial Hedge

A risk management strategy that does not fully offset the potential losses from an exposure, covering only a portion of the risk.