Which of the Following Is a Difference Between "Quantitative Easing

Multiple Choice

Which of the following is a difference between "quantitative easing" and ordinary open-market operations?

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