Quantitative easing (QE) is when a central bank:
ARaises rates
BBuys long-term securities to expand money supply and lower long ratesCORRECT
CIssues new currency
DCuts banks' licences
CFAEconomics
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Why the answer is B, and why the others tempt you.
QE = unconventional monetary tool — central bank buys bonds to inject liquidity and lower borrowing costs.
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