When the Fed Embarked on a Policy Known as Quantitative

question 253

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 ration 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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Definitions:

Path-goal Theory

A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying paths to goals and removing obstacles.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on their expectations of outcomes and rewards.

Valuable Payoff

Significant or worthwhile benefits or gains, often as a result of investment or effort in a particular area or activity.

Motivational Theory

A psychological framework that seeks to understand what drives individuals to initiate, direct, and persist in specific behaviors.