{"id":89269,"date":"2025-06-01T10:00:19","date_gmt":"2025-06-01T10:00:19","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89269"},"modified":"2025-06-01T10:00:19","modified_gmt":"2025-06-01T10:00:19","slug":"which-one-of-the-following-best-describes-the-term-quantitative","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-best-describes-the-term-quantitative\/","title":{"rendered":"Which one of the following best describes the term ‘Quantitative"},"content":{"rendered":"

Which one of the following best describes the term ‘Quantitative Easing’?<\/p>\n

[amp_mcq option1=”It is a policy tool used by central banks to inject liquidity into the financial system.” option2=”It is a policy tool used by governments to stimulate economic growth.” option3=”It is a monetary policy tool used to control inflation.” option4=”It is a fiscal policy tool used to reduce government debt.” correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2010<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nQuantitative Easing (QE) is a monetary policy tool used by central banks.
\n<\/section>\n
\n– Quantitative Easing is a form of unconventional monetary policy used by central banks to stimulate the economy when standard monetary policy (like lowering interest rates) is no longer effective (e.g., when interest rates are near zero).
\n– It involves the central bank purchasing long-term securities from the open market to increase the money supply and encourage lending and investment. This injects liquidity into the financial system.
\n– It is distinct from traditional monetary policy aimed solely at controlling inflation via interest rates, and it is not a fiscal policy tool used by the government.
\n<\/section>\n
\nQE aims to lower long-term interest rates and increase the money supply, making it cheaper for businesses and consumers to borrow money, thereby stimulating economic activity. It is typically employed during times of economic crisis or recession.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following best describes the term ‘Quantitative Easing’? [amp_mcq option1=”It is a policy tool used by central banks to inject liquidity into the financial system.” option2=”It is a policy tool used by governments to stimulate economic growth.” option3=”It is a monetary policy tool used to control inflation.” option4=”It is a fiscal policy … <\/p>\n

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