When the Fed increases its quantity of assets, by effectively printing money and buying securities in the openmarket, it is usingOA. credit easingOB. quantitative easingOC. exchange rate easingOD. forward guidance

Answered: When the Fed increases its quantity of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the Fed increases its quantity of assets, by effectively printing money and buying securities in the open
market, it is using
OA. credit easing
OB. quantitative easing
OC. exchange rate easing
OD. forward guidance

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Step 1

The fed otherwise called the Central bank or basically the Federal Reserve) is the focal financial arrangement of the US of America. It was made on December 23, 1913, with the sanctioning of the Central bank Act, after a progression of monetary frenzies (especially the frenzy of 1907) prompted the longing for focal control of the money related framework to lighten monetary emergencies

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