With the Followings Is NOT One of the Reasons Why

question 48

Multiple Choice

With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?

• A)Most of the resulting increase in the monetary base just flows into holdings of excess reserves.
• B)Banks just add to their holdings of excess reserves instead of making loans.
• C)The asset purchase program involves only the purchase of short-term government securities.
• D)The asset purchase program involves only the purchase of long-term government securities.

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Definitions:

Adequate Consideration

Something of value that is deemed by law to be sufficient grounds for enforcing a party's obligation under a contract.

Legal Detriment

The loss or disadvantage that a party agrees to suffer within a contractual agreement which gives value to the contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has relied on that promise to their detriment.

Charitable Subscriptions

Commitments made by individuals or organizations to donate money to charities, typically on a recurring basis.