In contrast to quantitative easing, targeted asset purchases O A. Shift the composition of the balance sheet away from risk-free assets toward risky assets. O B. Decreases the size of the central bank's balance sheet OC. Primarily involves loans extended to commercial banks to improve liquidity in the banking sector O D. Increases the liabilities on the Federal Reserve's balance sheet O F. Is used to reduce the market fed funds rate

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
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In contrast to quantitative easing, targeted asset
purchases
O A. Shift the composition of the balance sheet away
from risk-free assets toward risky assets.
O B. Decreases the size of the central bank's balance
sheet
O C. Primarily involves loans extended to commercial
banks to improve liquidity in the banking sector
O D. Increases the liabilities on the Federal Reserve's
balance sheet
O F. Is used to reduce the market fed funds rate
Transcribed Image Text:In contrast to quantitative easing, targeted asset purchases O A. Shift the composition of the balance sheet away from risk-free assets toward risky assets. O B. Decreases the size of the central bank's balance sheet O C. Primarily involves loans extended to commercial banks to improve liquidity in the banking sector O D. Increases the liabilities on the Federal Reserve's balance sheet O F. Is used to reduce the market fed funds rate
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