Initially, Quantitative Easing Was Not Much Help in Creating Economic

question 6

Multiple Choice

Initially, quantitative easing was not much help in creating economic growth because

• A)banks did not lend out the excess reserves that were created by quantitative easing.
• B)the Federal Reserve also increased the required reserve ratio so additional reserves were not available for lending.
• C)the Federal government began to cut spending, which counteracted the expansionary monetary policy.
• D)the expansion of the monetary base was inflationary.

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Definitions:

Revenues

The aggregate sum of funds a business accrues from selling goods or delivering services in a given timeframe.

Expenses

Costs incurred by a business in the process of earning revenue, often classified as operating or non-operating expenses.

Miscellaneous Expense

Small, often unpredictable expenditures that don't fit neatly into a designated budget category.

Post-Closing Trial Balance

A list of all the accounts and their balances after the closing entries are made, ensuring that debits equal credits in the ledger.