With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certai

Question

2 years ago

13

With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certai

n mortgage-backed securities to keep interest rates low. This policy is known as
A) quantitative easing.
B) securities-bubble deflating.
C) inflation targeting.
D) contractionary monetary policy

Social Studies

1 answer:

grigory [225] · Answer 1 · 2022-04-23T00:48:29+03:00

Answer:

A

Explanation:

Quantitative easing is a process whereby a government through its central bank buy up government securities and other securities in order to increase money supply to its economy while encouraging lending and investments. The process work in such a way whereby its central bank drops the interest rates of their country to zero.

This increases the supply of money as well as decreasing the yield of each of those asset categories.

With the federal funds rate near zero and the economy still​ struggling, the Fed began buying​ 10-year Treasury notes and certai

With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certai