The Main Difference Between Regular Open-Market Operations and Quantitative Easing

question 112

Multiple Choice

The main difference between regular open-market operations and quantitative easing (QE) is:

• A)whether the Fed is buying or selling financial assets.
• B)the type and term of the financial assets targeted.
• C)whether the Fed is trying to increase or decrease interest rates.
• D)that open-market operations is conducted by the Fed, while quantitative easing is mandated by Congress.

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Definitions:

Extreme Demand

A situation or requirement that is significantly beyond what is considered normal or reasonable, often challenging to meet or fulfill.

Negotiation

A dialogue between two or more parties aimed at reaching a consensus or resolving differences.

Indirect Tie

A relationship or connection between entities through an intermediary rather than a direct link.

Strength-of-ties Perspective

A theory in social science that examines the value and impact of the strength of interpersonal relationships within networks.