Quantitative Easing Occurs When the Central Bank Reveals Its Future

question 22

True/False

Quantitative easing occurs when the central bank reveals its future plans to market participants.

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Definitions:

Option Contract

A contract giving the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specific time frame.

Arabian Mare

A female horse of the Arabian breed, known for its endurance, speed, intelligence, and distinctively shaped head and high tail carriage.

Irrevocable

Something not capable of being changed or called back, often used in the context of trusts or certain decisions.

Payment

The act of giving money, goods, or other forms of value in exchange for products, services, or to fulfill a financial obligation.