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:

Modernization Theory

A theory that explains the process of transformation from a traditional, rural, agrarian society to a secular, urban, industrial society.

Transnational Corporations

Corporations operating in more than one country, beyond their home country's national boundaries.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, largely influenced by trade and investment and facilitated by information technology.

Overseas Travel

The act of traveling to countries that are not one's own, often for vacation, work, or study purposes.