Question 22 When the Fed embarked on a policy known as quantitative easing, they

ID: 1211042 • Letter: Q

Question

Question 22

When the Fed embarked on a policy known as quantitative easing, they

slowly lowered the federal funds rate target until it was equal to zero.

they reduced the required reserve ration by one-quarter point per month for 12 months.

bought longer-term securities than are usually bought in open market operations.

opened up lending to primary dealers, commercial banks, and investment banks.

slowly lowered the federal funds rate target until it was equal to zero.

they reduced the required reserve ration by one-quarter point per month for 12 months.

bought longer-term securities than are usually bought in open market operations.

opened up lending to primary dealers, commercial banks, and investment banks.

The correct answer is option (C). They bought longer-term securities than are usually bought in open market operations.

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