If the Fed Engages in Quantitative Easing,it Has Likely

question 247

Multiple Choice

If the Fed engages in quantitative easing,it has likely

• A)decreased the federal funds rate to almost zero by buying large sums of securities.
• B)increased the discount rate to prevent inflation.
• C)decreased the discount rate by selling its own securities.
• D)increased the federal funds rate by selling private securities.
• E)started paying interest on required reserves.

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Definitions:

Prime Mover

A muscle or muscle group that plays a leading role in performing a specific movement through contraction.

Orbicularis Oris

A muscle around the mouth that controls the movements of the mouth and lips, crucial in forming facial expressions and speech.

Eyebrows

The strips of hair growing above the eyes, playing a role in facial expression, communication, and protection of the eyes from sweat and debris.

Buccinators

The buccinator muscles are thin, flat muscles of the cheeks, involved in blowing, sucking actions, and aiding in mastication by pressing the cheeks against the teeth.