Which of the Following Is Not Correct About Quantitative Easing

question 32

Multiple Choice

Which of the following is not correct about quantitative easing?

• A)It is one of the conventional monetary policy tools.
• B)It refers to the Fed's asset purchasing program.
• C)It helped reduce term premium on long-term government bonds.
• D)As a result, the balance sheet of the Fed is much larger than it was before the crisis.

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Definitions:

Mixed Strategy Equilibrium

Mixed Strategy Equilibrium is a concept in game theory where each player in a game randomizes over possible moves according to a specific probability distribution, and no player can benefit by changing their strategy unilaterally.

Pure Strategy Equilibria

A situation in game theory where all players have chosen a strategy and have no incentive to change, leading to a stable outcome.

Maximin Strategy

A decision rule used in game theory and decision making to maximize the minimum possible payoff, focusing on minimizing losses in the worst-case scenario.

Dam Fund

A financial pool created to fund the construction, maintenance, or repair of dam infrastructure.