Question

The country/countries that has/have resorted to Quantitative easing in the last decade is/are

• A. United States of America
• B. United Kingdom
• C. Japan
• D. All of the above

Answer 1

The Correct Option is D

Quantitative easing (QE) is a monetary policy tool used by central banks to stimulate the economy when standard monetary policy becomes ineffective. The process generally involves the purchase of longer-term securities from the open market to increase the money supply and encourage lending and investment. In the last decade, several countries have adopted QE as a strategy to counter economic stagnation or recover from financial crises. Notable among these countries are: 

• United States of America: Following the 2008 financial crisis, the US Federal Reserve implemented quantitative easing in several phases to boost the economy and lower interest rates.
• United Kingdom: The Bank of England has also engaged in quantitative easing since 2009, aiming to mitigate the effects of various economic downturns, including the financial crisis and Brexit-related uncertainties.
• Japan: Known for its prolonged economic stagnation, Japan has frequently resorted to QE over the years, with the Bank of Japan expanding its balance sheet to overcome deflationary pressures.

Given these facts, the correct option is: All of the above, as all three countries have utilized quantitative easing in the last decade.