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.

---

Definitions:

Operations Times

The total time involved in performing all operational activities, including processing and waiting times, within a production cycle.

Hybrid Automobiles

Vehicles that use a combination of internal combustion engines and electric motors for propulsion, aiming to increase fuel efficiency and reduce emissions.

Productive Work

Activities or tasks that directly contribute to producing goods or providing services that have economic value.

Cycle Time

refers to the total time from the beginning to the end of a process, indicating how long it takes to complete a cycle of the process.