The Process of Buying Financial Assets to Stimulate the Economy

question 83

Multiple Choice

The process of buying financial assets to stimulate the economy when the central bank target interest rate is near or at zero and the interest rate cannot be lowered further is called:

• A)bond-trading.
• B)quantitative bidding.
• C)open market purchase.
• D)quantitative easing.
• E)open market sale.

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Definitions:

Moral Behavior

Actions that are in accordance with accepted moral rules or standards of conduct, often based on ethical principles of right and wrong.

Accommodation

In psychology, a cognitive process of adjusting one's schema to incorporate new information; in everyday usage, refers to making physical or social adjustments or adaptations.

Assimilation

The process by which a person or a group becomes part of another culture.

Existing Theories

Previously developed and accepted explanations for phenomena or observations within a particular domain of knowledge.