Write a brief note on quantitative easing.

Question

09 Sep 2024

Answer :

Word Count : 289

Quantitative easing (QE) is a non-traditional monetary policy tool used by central banks to stimulate the economy when conventional monetary policies, such as lowering interest rates, become ineffective. This approach is particularly employed during periods of economic downturn or deflationary pressures.

The primary objective of QE is to increase the money supply and encourage lending and investment ____ _____ _________ ___ ____ _______ ________ ______.
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Partculars		Rs. in crores
(i)	compensation of employees	2000
(ii)	profit	800
(iii)	rent	300
(iv)	Interest	250
(v)	Mixed income of self empoiyed	7000
(vi)	Net current teansfecrs to abroad	200
(vii)	Net Exporst	-100
(viii)	Net indirecct taxes	1500
(ix)	Net factor income from abroad	600
(x)	Depreciation	120