Which of the Following Is Quantitative Easing

question 26

Multiple Choice

Which of the following is quantitative easing?

• A) The Bank of Canada sells short-term government securities.
• B) The Bank of Canada sells long-term government securities.
• C) The Bank of Canada buys long-term government securities.
• D) The Bank of Canada buys short-term government securities.

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Definitions:

Industrial Production

A measure of the output of the industrial sector of the economy, encompassing manufacturing, mining, and utilities.

Firm Size

A measure that typically reflects a company's scale of operations, often indicated by its total revenue, assets, or number of employees.

Risk Premium

The risk premium is the extra return above the risk-free rate that investors require to compensate for the risk of holding a risky asset.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones, indicating their reluctance to take on investments that carry a higher chance of losing value.