'Quantitative Easing' Refers to the Action of the Central Bank

Multiple Choice

'Quantitative easing' refers to the action of the central bank:

A) to commence open market operations by buying short-term Treasury securities.
B) to add to the effect of a contractionary monetary policy using an increase in the money supply.
C) to offset the effect of a very high cash rate.
D) to buy long-term Treasury notes, when the cash rate can no longer be lowered.