One Feature of the Second Round of QE ("QE2") Was

question 43

Multiple Choice

One feature of the second round of QE ("QE2") was that the Fed engaged in "forward commitment," by pre-announcing exactly the quantity of bonds it was going to buy and for how long the buying would last. This change in policy was intended to:

• A) Give the Fed ample flexibility to change its policy
• B) Stabilize the prices of bonds in the open market
• C) Limit the duration of the easy monetary policy stance of the Fed
• D) Enhance the banks' willingness to lend out their reserves

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Definitions:

Racial Inequality

The unequal treatment or perceptions of individuals based on their race, leading to disparities in income, education, employment, health, and other areas.

Operation Desert Storm

The combat phase of the Gulf War, launched in January 1991, to liberate Kuwait from Iraqi occupation.

Iraqi Army

The military land force component of Iraq, responsible for defending the country and its interests.

Kuwait

A country in Western Asia, located on the northern edge of Eastern Arabia at the tip of the Persian Gulf, known for its petroleum-based economy, liberal trade policies, and significant cultural heritage.