Author Question: Quantitative easing refers to a policy action in which a central bank A) sells government ... (Read 110 times)

gonzo233 · **on:** Jun 30, 2018

Quantitative easing refers to a policy action in which a central bank

A) sells government securities to directly decrease bank reserves.
B) decreases interest rates directly without altering bank reserves.
C) increases interest rates directly without altering bank reserves.
D) buys government securities to directly increase bank reserves.

Question 2

When lenders are unable to get good information about the worthiness of a project the lender has the problem of

A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.