单选题

As a monetary policy tool, quantitative easing (QE) will most likely help revive an ailing economy in which of the following environments?

【正确答案】 C
【答案解析】

C is correct. Quantitative easing (QE) is an "unconventional" approach to monetary policy and is operationally similar to open market purchase operations but conducted on a much larger scale. The additional reserves created by central banks in a policy of quantitative easing can be used to buy any asset. The idea was that this additional reserve would kick-start lending, causing broad money growth to expand, which would eventually lead to an increase in real economic activity.