When the Federal Reserve Conducts Open Market Purchases to Increase

question 299

Multiple Choice

When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called

• A) qualitative easing.
• B) quantitative easing.
• C) qualitative tightening.
• D) quantitative tightening.

---

Definitions:

Upper Quartile

The value below which 75% of the observations in a dataset fall, also known as the third quartile, representing the midway point of the upper half of a data set.

Government Workers

Employees who work for local, state, or federal governments, performing a wide range of public service duties.

Lower Quartile

The median of the lower half of a data set, marking the 25th percentile.

Test Scores

Numeric representations of an individual's performance on a standardized test.