The Purpose of Quantitative Easing Is to Drive Down Long-Term

question 66

True/False

The purpose of quantitative easing is to drive down long-term interest rates, which are usually more important for private investment spending than short-term rates.

---

Definitions:

Pro Forma Net Income

An estimate of a company's net income excluding non-recurring items, projecting future earnings based on certain assumptions or adjustments.

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of revenue that remains as profit after expenses.

Sales Increase

Refers to the rise in the amount of goods or services sold by a company over a specific period, showcasing business growth.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.