When the Fed Alters the Types of Assets It Owns,it

question 101

Multiple Choice

When the Fed alters the types of assets it owns,it is engaging in

• A)credit easing.
• B)forward guidance.
• C)quantitative easing.
• D)changing the discount rate.

---

Definitions:

Utility Function

A mathematical representation that describes how the total utility or satisfaction a consumer derives from consuming goods and services depends on the quantities consumed.

Self-employment

A state in which an individual works for himself or herself instead of working for an employer that pays a salary or a wage.

Expected Utility

A theory in economics that calculates the anticipated utility or satisfaction from different possible outcomes, taking into account their probabilities.

Risk Averse

A term describing an individual's or entity's preference for minimizing risk, favoring safer options over riskier ones.