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:

Major Decisions

Significant determinations or resolutions made, often in the context of business or personal choices, with long-term impacts.

Rehabilitative Alimony

A type of spousal support intended to provide financial assistance while the receiving spouse gains employment or education necessary to become self-supporting.

Ex-Spouses

Individuals who were previously married to each other and have legally dissolved their marriage relationship.

Permanent Alimony

Financial support paid indefinitely by one ex-spouse to another following divorce, often until the recipient remarries or passes away.