One feature of the second round of QE ("QE2") was that the Fed engaged in "forward commitment," by pre-announcing exactly the quantity of bonds it was going to buy and for how long the buying would last. This change in policy was intended to:
A. Give the Fed ample flexibility to change its policy
B. Stabilize the prices of bonds in the open market
C. Limit the duration of the easy monetary policy stance of the Fed
D. Enhance the banks' willingness to lend out their reserves
D. Enhance the banks' willingness to lend out their reserves
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No distinction is made between the effects of anticipated and unanticipated policy in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional Keynesian and real business cycle theory
Including discouraged workers in the labor market statistics would raise the unemployment rate
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Time deposits are subject to higher reserve requirements than checking deposits. B. Treasury bills and notes are generally considered part of a bank's secondary reserves. C. Large banks are subject to a 10 percent reserve requirement on nearly all of their checking deposits. D. None of the statements are false.
The definition of monopolistic competition includes
A. few firms and ease of entry and exit. B. few firms and barriers to entry and exit. C. many firms and barriers to entry and exit. D. many firms and ease of entry and exit.