A. There is no difference between the two policy tools.
B. Open-market operations are done in order to lower interest rates; quantitative easing is
merely intended to increase bank reserves.
C. Quantitative easing is focused exclusively on U.S. government bonds; open-market
operations also include the buying and selling of debt issued by government agencies and
government-sponsored entities.
ANSWER
B. Open-market operations are done in order to lower interest rates; quantitative easing is
merely intended to increase bank reserves.