Economics · Monetary Policy
The unconventional monetary policy tool known as 'Quantitative Easing' (QE) by a Central Bank primarily implies:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Merely reducing the policy repo rate by a few basis points
- 2Large-scale purchase of financial assets/government bonds by the Central Bank from the open market✓
- 3Directly regulating interest rates charged by commercial lenders
- 4Large-scale selling of government securities by the Central Bank
Correct answer
Large-scale purchase of financial assets/government bonds by the Central Bank from the open market
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