Quantitative easing referred to decrease in lending rates by federal bank to promote growth

1. Only 1 and 2
2. Only 2
3. Only 1 and 3
4. All of the above

Which of the following corresponds to quantitative easing?

Q. With reference to the term Quantitative Easing (QE), Which of the following statements is/are incorrect?

Select the correct answer using the codes given below:

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

In November of 2010, the US Central Bank, the Federal Reserve, embarked on a policy of quantitative easing. Since this policy essentially represents an increase in the supply of money, it may create inflationary expectations. Let’s assume (and this is a strong assumption), that as a result of this polic y, US households start to expect inflation (price increases) in the housing market. The effect on the housing market will be: