Which of the following statements about quantitative easing is most accurate?

Question

Multiple Choice
Quantitative easing refers to the Fed's use of open-market operations to buy hundreds of billions of dollars' worth of long-term bonds.
Quantitative easing has become one of the three permanently recognized tools of monetary policy and is used almost daily.
Quantitative easing significantly raised interest rates in the aftermath of the financial crisis.
Quantitative easing is the new official name for open-market operations.

Answer 1

The most accurate statement about quantitative easing from the options provided is:

Quantitative easing refers to the Fed's use of open-market operations to buy hundreds of billions of dollars' worth of long-term bonds.

This statement accurately describes the process of quantitative easing, which involves a central bank purchasing long-term securities to increase the money supply and encourage lending and investment. The other statements are less accurate in their implications or misrepresent nuances about the nature of quantitative easing and its role in monetary policy.