An Example of Quantitative Easing Is When

question 30

Multiple Choice

An example of quantitative easing is when:

• A)central banks purchase financial assets with longer maturities which in turn causes interest rates to fall and Real GDP to increase.
• B)central banks purchase financial assets with short maturities which in turn causes interest rates to fall and Real GDP to decrease.
• C)commercial banks purchase financial assets with longer maturities which in turn causes interest rates to rise and Real GDP to increase.
• D)central banks purchase financial assets with short maturities which in turn causes interest rates to rise and Real GDP to rise.

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Definitions:

Supreme Court

The highest federal court in the United States, which has the ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Fundamentalists

Individuals or groups who advocate for a strict and literal interpretation of religious texts and doctrines, often in opposition to modernist or secular views.

Prohibition

The act of formally forbidding something by law, such as the historical ban on the production and sale of alcoholic beverages in the United States from 1920 to 1933.

Immigration

The act of moving to a country that is not one's native country with the intention to settle there.