question archive Quantitative easing is: a
Subject:EconomicsPrice:2.88 Bought3
Quantitative easing is:
a. Another term for monetary policy
b. Monetary policy tool
c. Monetary Policy tools + interest rates
d. The purchasing of hard assets by the federal reserve in order to increase our country's money supply
The correct answer is b. Monetary policy tool.
Quantitative easing is a monetary policy tool. It is used to increase the money supply of the country. The central bank purchases bonds from the public. This increases the money held by private consumers.