Definition of Quantitative Easing
XAT 2015 · General Knowledge · Easy · General Knowledge
What is "Quantitative Easing"?
- A.
Reducing excise duty so as to promote higher demand.
- B.
Restricting the number of units produced by a factory.
- C.
Allowing companies to sell as much as possible.
- D.
A way of influencing money supply by the central bank.
- E.
None of the above
Answer
D
Explanation
Quantitative Easing (QE) is a monetary policy action used by central banks to stimulate the economy by purchasing financial assets to increase money supply and lower interest rates.
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