When the Fed Embarked on a Policy Known as Quantitative

question 267

Multiple Choice

When the Fed embarked on a policy known as quantitative easing,they

• A)slowly lowered the federal funds rate target until it was equal to zero.
• B)they reduced the required reserve ration by one-quarter point per month for 12 months.
• C)bought longer-term securities than are usually bought in open market operations.
• D)opened up lending to primary dealers, commercial banks, and investment banks.

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Definitions:

Salaries Payable

An account that represents the total amount of wages earned by employees, but not yet paid by the employer.

Payroll Register

A document that records the payment details of a company's employees, including wages, deductions, and net pay.

Monthly Payroll

The total amount of money paid by a business to its employees in a month, encompassing wages, salaries, and other compensations.

Salaries Payable

A liability account that records the amount of salaries due but not yet paid to employees.