In Terms of the Mechanics of Quantitative Easing

question 370

Multiple Choice

In terms of the mechanics of quantitative easing,

• A) quantitative easing formally changes interest rates; open-market operations only influence rates.
• B) it works the same as open-market operations.
• C) it differs from open-market operations in that the securities purchases occur directly from households.
• D) it only changes the interest rate; it doesn't influence bank reserves.

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