Central bankslong dash—the ?Fed, the Bank of? Japan, the European Central? bank,
ID: 1157309 • Letter: C
Question
Central
bankslong dash—the
?Fed, the Bank of? Japan, the European Central? bank, the? People's Bank of? China, and
otherslong dash—have
bought trillions of dollars of bonds. The Fed alone has bought? $4 trillion-worth.
??
?Source: Daily? FX, July? 15, 2016
????
The? Fed's policy tools include? ______.???
A.
open market? operations, marginal tax? rates, and government expenditure
B.
the required reserve? ratio, discount? rate, and open market operations
C.
extraordinary crisis? measures, marginal tax? rates, and the discount rate
D.
the required reserve? ratio, discount? rate, and government expenditure
To increase its assets to? $4 trillion, the Fed used? ______.???
A.
the discount rate
B.
?large-scale open market operations called quantitative easing
C.
a printing press to print more currency
D.
required reserve ratio
Explanation / Answer
1)
B.
the required reserve? ratio, discount? rate, and open market operations
because above all impact the money supply and cost of funds in the economy as part of the Fed monetary policy.
2)
B.
?large-scale open market operations called quantitative easing
because under open market operations the Fed buys government securities which increased assets.
the above is answer..
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