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

question 91

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:

Emilio Aguinaldo

A Filipino revolutionary, politician, and military leader who is considered to be the first and the youngest President of the Philippines and led Filipino forces during the Spanish-American War and the Philippine-American War.

Philippine Islands

An archipelago of over 7,000 islands in Southeast Asia, governed as a territory of the United States from 1898 until its independence in 1946.

Clayton-Bulwer Treaty

An 1850 agreement between the United States and Great Britain aiming to neutralize Central American territories and stipulate that neither nation would exclusively control a transoceanic canal.

Central American Canal

A concept referring to a canal through Central America, such as the Panama Canal, facilitating maritime trade between the Atlantic and Pacific Oceans.