The Third Round of Quantitative Easing,announced in September 2012,was Focused

question 9

Multiple Choice

The third round of quantitative easing,announced in September 2012,was focused on purchases of

• A) short-term Treasury bills.
• B) long-term Treasury notes.
• C) long-term Treasury notes and sales of short-term Treasury bills.
• D) mortgage-backed securities.

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Definitions:

Qualitative Variables

Variables that express qualitative attributes, and are usually described by non-numeric categories or groups.

Regression Model

A statistical approach for estimating the relationships among variables, often used for prediction and forecasting.

Dummy Variables

Variables created to assign numerical values to categorical data, often used in regression analysis to include qualitative factors as independent variables.

Qualitative Variables

Variables that categorize or describe attribute characteristics without a natural numerical order or ranking.