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:

Hybrid Atomic Orbitals

Orbitals formed by the combination of standard atomic orbitals within an atom, explaining the bonding and geometry of molecules more accurately than unhybridized orbitals.

C-O Bond

A chemical bond between carbon and oxygen atoms, common in various organic and inorganic molecules and materials.

IUPAC Name

A structured technique for the naming of chemical compounds suggested by the International Union of Pure and Applied Chemistry.

IUPAC Name

A name given to a chemical entity following the guidelines set by the International Union of Pure and Applied Chemistry.