SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    In recent months the term 'quantitative easing' frequently appears in Newspapers. Which of the following are true about such term
    1. It aims at reviving consumer spending and economic growth
    2. It involves cut down of interest rate by central bank
    3. It may also involve selling of government securities by central bank. Which of the statements given above is/are correct?

    A)  1 and 2 only    

    B)  2 and 3 only

    C)  1 and 3 only

    D)  1, 2 and 3

    Correct Answer: A

    Solution :

    [a] Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.

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