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Which of the following is described as an innovative and nontraditional method used by the Federal Reserve to expand the quantity of money and credit during the recent U.S recession?

A. increased discount rate
B. increased reserves requirements
C. open market operations
D. quantitative easing

1 Answer

1 vote

Answer: (D) Quantitative easing

Step-by-step explanation:

The quantitative easing is one of the non-traditional and the innovative method that expanding the various types of operations in the open market and it is specifically use by federal reserve.

The main purpose of the quantitative easing is that it helps in increasing the economical growth and also lower the interest rate of the monetary policies. It is also called as the asset purchasing at very large scale.

Therefore, Option (D) is correct.

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