Q.13) Which of the pairs given below is/are correctly matched? 1.

Quantitative
Easing : : It is an unconventional monetary policy measure where a central bank
purchases securities from the market to lower interest rates. 2. Countercyclical
policy : : It is a fiscal policy measure where the government promotes spending
during downturns and tightens credit during the inflationary periods. Choose the
appropriate answer: a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2 Q.13) Solution (c)
Quantitative Easing ? It is an unconventional MP where a central bank purchases
securities from the market to lower interest rates. ? It floods financial
institutions with capital to increase liquidity. Countercyclical policy ? A
countercyclical policy is a FP where the government promotes spending during
downturns and tightens credit during the inflationary periods