Consider the following regarding Federal Tapering :

1. It was done to reign in inflation immediately after the global financial crisis
2. It is the gradual withdrawal of quantitative easing measures

Which of the above are correct?

1 only

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2 only

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Both 1 and 2

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None of the above

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Solution

The correct option is B
2 only
Tapering refers to a gradual reduction in the monthly purchase of assets by the Federal Reserve. So Federal Tapering is the process of slowing down the rate at which Quantitative Easing is done.

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Consider the following regarding Federal Tapering : 1. It was done to reign in inflation immediately after the global financial crisis 2. It is the gradual withdrawal of quantitative easing measures Which of the above are correct?

The correct option is B 2 onlyTapering refers to a gradual reduction in the monthly purchase of assets by the Federal Reserve. So Federal Tapering is the process of slowing down the rate at which Quantitative Easing is done.

Consider the following regarding Federal Tapering :

1. It was done to reign in inflation immediately after the global financial crisis
2. It is the gradual withdrawal of quantitative easing measures

Which of the above are correct?

The correct option is B
2 only
Tapering refers to a gradual reduction in the monthly purchase of assets by the Federal Reserve. So Federal Tapering is the process of slowing down the rate at which Quantitative Easing is done.