The "Quantitative Easing" Policies of the Fed During, and Following

question 25

Multiple Choice

The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,

• A) expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans.
• B) reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply.
• C) expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves.
• D) reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.

---

Definitions:

Psychological Test

A standardized measure designed to assess an aspect of an individual's mental or emotional state or personality.

Standardization

The process of making something conform to a standard by ensuring consistency and uniformity among different instances or products.

Charles Spearman

A British psychologist who is best known for his work in statistics and intelligence theory, notably for conceptualizing general intelligence (g).

General Intelligence

A theoretical measure of an individual's overall mental capability, often referred to as the 'g factor' in psychometric assessments.