answersLogoWhite

0

Type your answer here... THE FED CANT REDUCE THE INTEREST RATES THAT IT CHARGES BACKS ANY MORE. THE ONLY ALTERNATIVE IS TO SIMPLY MAKE MORE MONEY AVAILABLE EL SO THE BANKS CAN MAKE THE LOANS

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Economics

What is the definition of quantitative easing?

My definition of quantitative easing is reasoning your problems through thought. It allows things to becomes simpler. Life is always better when you reason.


What is Swift's proposal for easing poverty in Ireland?

Sale the poor babies to the rich


What are the key differences between quantitative easing and printing money, and how do they impact the economy differently?

Quantitative easing involves central banks buying financial assets to increase money supply and stimulate the economy. Printing money refers to directly increasing the money supply. Quantitative easing is more targeted and can help lower interest rates, while printing money can lead to inflation and currency devaluation. Both can impact the economy by influencing interest rates, inflation, and overall economic growth.


What is the difference between open market operations and quantitative easing in terms of their impact on the economy?

Open market operations involve the buying and selling of government securities by the central bank to control the money supply and interest rates. Quantitative easing, on the other hand, involves the central bank purchasing long-term securities to increase the money supply and stimulate economic activity. While both aim to influence interest rates and economic growth, quantitative easing is more aggressive and is typically used during times of economic crisis.


What does the financial term quantitative easing mean?

"Quantitative easing" comes from the idea of reducing ("easing") pressure on banks by introducing a specified amount ("quantitative") of additional money into the reserves of member banks. It is sometimes referred to as "printing money", although since most transfers are done in the form of electronic records rather than cash, it is really more a matter of increasing or decreasing the amount of money a member bank has "on the books" in its reserve account at the central bank, in exchange for other financial instruments such as bonds or other securities. Quantitative easing is typically used when other methods of controlling the money supply, such as adjusting the discount interest rate, fail (often because interest rates are already very low, and can't be adjusted downward much further). One risk of invoking quantitative easing includes introducing too much additional money into the reserves, thus spurring hyperinflation. On the other hand, if not enough additional money is introduced, the receiving banks may not use the money it received for any additional lending, thus failing to spur the economy.

Related Questions

Can you give me a sentence with the word easing?

easing, easing, easing, how much i love the word easing:)


What is an observations that deal with descriptions that cannot be expressed in numbers?

observation without numerical values are qualatative with numbers is quantatative


Can you give an example of a sentence using the word easing?

The medicine was slowly easing the pain in his leg after the surgery. Like that? if so, there you go.


What is the definition of easing of international hostility?

detente


What does quantum easing mean?

Printing money.


What is the definition of quantitative easing?

My definition of quantitative easing is reasoning your problems through thought. It allows things to becomes simpler. Life is always better when you reason.


What is QE2 in the financial markets?

"quantitative easing" 2


What is the nine letter word for easing?

lessening, loosening


How did the roads keep the roman empire together during the 200 years of the pax romana?

Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.


How did roads keep the roman empire together during the 200 years of the pax romana?

Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.Roads helped keep the empire together during the Pax Romana (and afterwards) by easing travel, trade and communications.


What makes a good pivot animation?

easing, creativity and originallity.


Name for easing tension during cold war?

The Thaw.