Quantitative Easing Refers to a Type of Open Market Operations

question 4

Multiple Choice

Quantitative Easing refers to a type of open market operations where the central bank buys ____ on a large scale

• A) Long-term securities
• B) Short-term securities
• C) Shares of stock from domestic citizens
• D) Shares of stock from overseas

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Definitions:

Semipermeable

Characteristic of a membrane that allows certain substances to pass through it while blocking others.

Depolarization

A decrease in the difference in electrical charge across a cell membrane, making the inside of the cell less negative compared to the outside.

Sodium Ions

Positively charged atoms (Na+) that play crucial roles in physiological processes, including nerve impulse transmission and muscle contraction.

Physiological Relaxation

A state in which the body is not in alert mode, often characterized by reduced tension and stress, and an increased feeling of calm.