Quantitative easing (QE) as a monetary policy tool aims to:

CA Foundation · Business Economics · MTP · May 2026
Quantitative easing (QE) as a monetary policy tool aims to:
(A) A. Reduce credit availability
(B) B. Increase money supply by buying financial assets
(C) C. Increase reserve requirements
(D) D. Raise policy rates

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Increase money supply by buying financial assets

Topics: Money Market

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