Quantitative Easing (QE) and Traditional Open-Market Purchase Differ in That

question 236

Multiple Choice

Quantitative easing (QE) and traditional open-market purchase differ in that

• A) the goal of an open-market purchase was to raise the federal funds rate, while QE intends to reduce it.
• B) open-market purchases raises the reserves in the banking system, while QE does not affect the amount of reserves.
• C) an open-market purchase was intended to reduce the federal funds rate, while QE is not intended to do so.
• D) open-market purchases increase the reserves in the banking system, while QE reduces the amount of reserves.

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Definitions:

Absolute Value Equation

An equation that contains an absolute value expression, representing the distance of a number from zero on the real number line.

Set Notation

A standardized method of describing or defining a set by clearly specifying its elements or the properties that its members must satisfy.

Absolute Value Inequality

An inequality that involves the absolute value of a variable expression and defines a range of solutions.

Solution

A quantity or array of quantities that solve an equation, inequality, or simultaneous equations.