The main difference between quantitative easing and credit easing is that:
A. credit easing shifts long-term interest rates down while quantitative easing shifts them up.
B. quantitative easing changes the mix of the Fed's holdings, credit easing does not.
C. credit easing changes the quality of the Fed's holdings, quantitative easing does not.
D. There is no difference since both add credit to the economy.
Answer: C
You might also like to view...
As a general rule, antitrust authorities refer to any firm with a market share above ________ percent as a monopoly even though it is technically a dominant firm.
A) 66 B) 75 C) 95 D) 50
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically have the necessary information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically do not have the incentives to run their division efficiently
Suppose the required reserve ratio is 0.2, and the Fed buys $5,000 of U.S. government securities from Bank A, which lends $4,000 and keeps $1,000 in its vault as cash. In this round of the money-creation process, the M1 money supply has increased by: a. $1,000
b. $4,000. c. $5,000. d. $10,000. e. $3,000.
Which of the following is an infant-industry argument in favor of restrictions on foreign trade?
a. Foreign producers must be stopped from selling their products in this country below cost of production. b. Domestic workers must be protected from the lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply capacity of certain products. d. Do unto others as they do unto you. e. Industries in the early stages of development must be protected from more mature producers.