Under the Policy of Credit Easing,the Central Bank _______________ in Order

question 88

Multiple Choice

Under the policy of credit easing,the central bank _______________ in order to reduce interest rate spreads in credit markets during a financial panic.

• A) creates central bank reserves for the purchase of financial assets
• B) reduces central bank reserves by selling financial assets
• C) purchases private-sector financial assets
• D) purchases government bonds
• E) prints more money.

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