During 2008-2013, the Fed Initiated Several Rounds of "Quantitative Easing

question 92

Multiple Choice

During 2008-2013, the Fed initiated several rounds of "quantitative easing."  Under this policy, the Fed

• A) increased its purchases of financial assets and thereby injected additional reserves into the banking system.
• B) increased its purchases of financial assets, which reduced the reserves available to the banking system.
• C) reduced its purchases of financial assets and thereby injected additional reserves into the banking system.
• D) reduced its purchases of financial assets and thereby reduced the quantity of reserves available to the banking system.

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Definitions:

Solution

A means of solving a problem or dealing with a difficult situation.

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A common vision condition, also known as myopia, wherein distant objects appear blurry while close objects can be seen clearly.

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Acting dishonestly or unfairly to gain an advantage, especially in a competitive situation or examination.

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The practice of presenting oneself or creating designs in a manner that is transparent, ethical, and devoid of deception.