When the Fed Embarked on a Policy Known as Quantitative

question 53

Multiple Choice

When the Fed embarked on a policy known as quantitative easing,they

• A)slowly lowered the federal funds rate target until it was equal to zero.
• B)reduced the required reserve ratio by one-quarter point per month for 12 months.
• C)bought longer-term securities than are usually bought in open market operations.
• D)opened up lending to primary dealers,commercial banks,and investment banks.

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