What is quantitative easing?

Understand the Problem

The question is asking for an explanation of quantitative easing, a monetary policy tool used by central banks to stimulate the economy by increasing the money supply.

Answer

A monetary policy where central banks buy securities to lower interest rates and increase the money supply.

Quantitative easing (QE) is a monetary policy where central banks purchase securities to lower interest rates, increase the money supply, and encourage lending to stimulate economic growth.

Answer for screen readers

Quantitative easing (QE) is a monetary policy where central banks purchase securities to lower interest rates, increase the money supply, and encourage lending to stimulate economic growth.

More Information

Quantitative easing is often used in times of economic crisis to help boost economic activity by making borrowing cheaper for consumers and businesses.

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