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.

---

Definitions:

Agricultural

Relating to the cultivation of land and breeding of animals and plants to provide food, fiber, medicinal plants, and other products.