'Quantitative Easing' Refers to the Action of the Central Bank

question 37

Multiple Choice

'Quantitative easing' refers to the action of the central bank:

• A)to commence open market operations by buying short-term Treasury securities.
• B)to add to the effect of a contractionary monetary policy using an increase in the money supply.
• C)to offset the effect of a very high cash rate.
• D)to buy long-term Treasury notes, when the cash rate can no longer be lowered.

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Definitions:

T-Test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Paired-Difference T-Test

A statistical method used to compare the means of two related groups to determine if there is a significant difference between them.

Normally Distributed

A type of probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Sample Variances

A measure of the dispersion of a set of data points in a sample.