Quantitative Easing

question 116

Multiple Choice

Quantitative easing

• A)is an open market sale of securities by the U.S. Federal Reserve.
• B)is an open market purchase of securities by the U.S. Federal Reserve.
• C)decreases bank reserves.
• D)raises the nominal interest rate.
• E)is an open market purchase of securities by Congress.

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Definitions:

Net Income

represents the total earnings of a company after deducting all expenses and taxes from total revenue.

Return on Investment

The gain or loss generated on an investment relative to the amount of money invested.

Selling Margin

The difference between the cost of a product and its selling price, indicating the profit made on the sale.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.