With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low. This policy is known as

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Felipe Romero

24 January, 22:06

With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low. This policy is known as

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Answers (1)

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Maxim Bowen · Answer 1

The answer is: Quantitative easing

Explanation:

Quantitative easing is a type of monetary policy in which the central bank purchases predetermined quantity or amount of government securities or other financial assets to increase the supply of money, encourage lending and investment and inject liquidity into the economy. It is a unconventional monetary policy which is used when the standard expansionary monetary policy is ineffective and during low or negative inflation.

Therefore, the given policy is known as Quantitative easing.