Which Is an Example of Quantitative Easing by the Federal

question 218

Multiple Choice

Which is an example of quantitative easing by the Federal Reserve?

• A) The Fed purchases $100,000 worth of short-term government bonds.
• B) The Fed purchases $50,000 worth of long-term government bonds.
• C) The Fed raises the money multiplier.
• D) The Fed lowers interest rates.

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Definitions:

Negatively Correlated

Describes two variables that move in opposite directions; as one increases, the other tends to decrease.

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data points are.

Portfolio

A collection of investments held by an individual or an institution.

Expected Rate

A predicted rate of return or outcome based on certain assumptions or historical data.