When the Fed uses quantitative easing, it is
[ Select ]
buying
selling

[ Select ]
long-term government debt
Treasury bills
:

Question

When the Fed uses quantitative easing, it is 
[ Select ]
buying
selling
 
[ Select ]
long-term government debt
Treasury bills
 :

BlackTom AI · Accepted Answer

The question presents two dropdowns to complete the statement about quantitative easing (QE) and requires filling in both blanks with correct options.
Option for the first blank: The Fed's QE program involves actions in which it primarily engages in asset purchases to inject liquidity. The two possible choices are buying or selling; QE is associated with buying assets, not selling, so the correct selection is buying.
Option for the second blank: The types of assets targeted by QE are longer-maturity securities in order to affect long-term interest rates. The choices are long-term government debt and Treasury bills; QE focuses on longer-term government debt (such as longer-maturity Treasuries) rather than short-term instruments like T-bills, so the correct selection is long-term government debt.
Explaining why the incorrect options are not correct:
- If you chose selling for the first blank, that would imply the Fed is reducing its balance sheet or tightening monetary policy, which is the opposite of QE.
- If you chose Treasury bills for the second blank, that would imply QE targets very short-term securities. In practice, QE aims to lower long-term interest rates by purchasing longer-dated securities, not short-term bills, so this would misrepresent the policy tool and its intended effect.
- If you chose long-term government debt in combination with selling for the first blank, it would describe an inconsistent or contradictory policy stance, since selling long-term debt would reduce liquidity and counter QE goals.
- If you selected buying in the first blank but Treasury bills in the second, that would mix a purchase action with a short-term security, which does not align with the conventional QE focus on longer maturities; the standard QE mechanism buys longer-dated securities to push down long-term yields.
In summary, QE is about buying (not selling) assets, specifically targeting long-term government debt (not short-term Treasury bills) to influence longer-term interest rates and promote lending and investment.

When the Fed uses quantitative easing, it is [ Select ] buying selling [ Select ] long-term government debt Treasury bills :多重下拉选择题

类似问题

The Fed's Quantitative Easing programs increased the supply of funds to the long-term securities market and thereby Blank ______ long-term interest rates.

An expansionary monetary policy whereby a central bank buys back predetermined amounts of government bonds or other financial assets to increase liquidity and stimulate the economy. This best describes...

Quantitative Easing (QE) involves:

Quantitative Easing (QE) involves:

When the Fed uses quantitative easing, it is [ Select ] selling buying [ Select ] Treasury bills long-term government debt :

The Federal Reserve conducted the policy of quantitative easing primarily when

Only one of the following non traditional monetary tools has been used as a policy response to both Great Recession and Covid-19 recession. Which one?

A criticism of Quantitative Easing in the U.K. described by the In The News vignette in Chapter 9 it that is increased the wealth of homeowners and stockholders but not others.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单