Helicopter Money​ Primer: The possible next frontier in quantitative easing      Central banks—the ​Fed, the Bank of​ Japan, the European Central​ bank, the​ People's Bank of​ China, and others—have bought trillions of dollars of bonds. The Fed alone has bought​ $4 trillion-worth.    ​Source: Daily​ FX, July​ 15, 2016   What are the​ Fed's policy tools and which policy tool did the Fed use to increase its assets to​ $4 trillion? The​ Fed's policy tools include​ ______.     A. the required reserve​ ratio, discount​ rate, and government expenditure   B. extraordinary crisis​ measures, marginal tax​ rates, and the discount rate   C. the required reserve​ ratio, discount​ rate, and open market operations   D. open market​ operations, marginal tax​ rates, and government expenditure   To increase its assets to​ $4 trillion, the Fed used​ _______.     A. a printing press to print more currency   B. required reserve ratios   C. the discount rate   D. ​large-scale open market operations called quantitative easing

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Helicopter Money​ Primer: The possible next frontier in quantitative easing
    
Central
banks—the
​Fed, the Bank of​ Japan, the European Central​ bank, the​ People's Bank of​ China, and
others—have
bought trillions of dollars of bonds. The Fed alone has bought​ $4 trillion-worth.
  
​Source: Daily​ FX, July​ 15, 2016
 
What are the​ Fed's policy tools and which policy tool did the Fed use to increase its assets to​ $4 trillion?
The​ Fed's policy tools include​ ______.
 
 
A.
the required reserve​ ratio, discount​ rate, and government expenditure
 
B.
extraordinary crisis​ measures, marginal tax​ rates, and the discount rate
 
C.
the required reserve​ ratio, discount​ rate, and open market operations
 
D.
open market​ operations, marginal tax​ rates, and government expenditure
 
To increase its assets to​ $4 trillion, the Fed used​ _______.
 
 
A.
a printing press to print more currency
 
B.
required reserve ratios
 
C.
the discount rate
 
D.
​large-scale open market operations called quantitative easing
 
 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Banking
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education