Which of the following is a difference between "quantitative easing" and ordinary open-market operations? Multiple Choice There is no difference between the two policy tools. Open-market operations are focused exclusively on US government bonds, quantitative easing also includes the buying and selling of debt issued by government agencies and government-sponsored entities. Quantitative easing is done in order to lower interest rates; open-market operations are merely intended to increase bank reserves.

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Which of the following is a difference between "quantitative easing" and ordinary open-market operations?
Multiple Choice
O
There is no difference between the two policy tools.
Open-market operations are focused exclusively on U.S. government bonds; quantitative easing also includes the buying and
selling of debt issued by government agencies and government-sponsored entities.
Quantitative easing is done in order to lower interest rates; open-market operations are merely intended to increase bank
reserves
Open-market operations involve forward commitment, quantitative easing is intentionally vague to maintain flexibility
Transcribed Image Text:Which of the following is a difference between "quantitative easing" and ordinary open-market operations? Multiple Choice O There is no difference between the two policy tools. Open-market operations are focused exclusively on U.S. government bonds; quantitative easing also includes the buying and selling of debt issued by government agencies and government-sponsored entities. Quantitative easing is done in order to lower interest rates; open-market operations are merely intended to increase bank reserves Open-market operations involve forward commitment, quantitative easing is intentionally vague to maintain flexibility
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