The Policy Tool of "Credit Easing" Refers to the ________

question 98

Multiple Choice

The policy tool of "credit easing" refers to the ________ during the 2008 financial crisis.

• A) Fed's purchase of private securities to stimulate banks' lending
• B) Fed's requirement that the federal government must lend to directly to home buyers
• C) federal government's requirement that the Fed must lend directly to home buyers
• D) Fed's lowering of the federal funds rate to zero
• E) Treasury's issuance of federal debt to finance home buying

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Definitions:

Null Hypothesis

In statistical hypothesis testing, the hypothesis that there is no effect or no difference, and it serves as the default assumption to test against.

Critical Value

A point on the test distribution that is compared to the test statistic to decide whether to reject the null hypothesis.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution.

Contingency Table

A contingency table is a type of table in a matrix format that displays the frequency distribution of the variables. It helps in analyzing the relationship between two or more categorical variables.